Does anyone have any thoughts on what is going on here with the USD/JPY pair? It’s is back at intervention levels but the DXY keeps trending down. Will they have to weaken the $ again to keep the lid on USD/JPY?
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My guess is that the yen will strengthen against the dollar going forward, given Japan’s recent policy changes.
Yen was devalued on purpose so to weaken yuan (they have been successful in doing so as China has started to devalue its yuan via injecting liquidity into its system). Major currencies don’t devalue that much on its own. That’s why DXY and yen doesn’t make any sense.
Everybody benefits from a weakened dollar. That weakening will continue because the US really needs that right now.
