Bank of Japan Intervenes–Finally!
As I wrote on Tuesday, the Bank of Japan could intervene on Thursday, and sure enough they did! Yen weakened overnight vs. all of the majors as the BOJ eased monetary policy. Recent Yen strength due to risk aversion in the markets has made it more difficlut for Japanese exports, so any relief they can get is welcome.
The question though is whether or not this is enough to change the longer-term sentiment surrounding the markets desire to own safe-havens in light of declining global economy. While the BOJ has intervened in the past, the relief they have received has been short-lived. If the US Fed embarks on QE3, then we may see the Yen strengthen again!