BOJ and Its Much Needed Intervention – A Case Of When, Not if?

The run of the Bank of Japan to weaken the Yen still continues as the US dollar and Japanese yen approach the 76 level. This level was last experienced when the BOJ tried to take charge and weaken the Yen.

This call would not be easy for the BOJ to handle again if they raised alone. The only working solution for them right now is to weaken the Yen, thereby bypassing the general havoc and repugnance present in the current market which would have otherwise triggered confusion in carrying down trading operations.

The predicted Greek default and the recent action processes followed by the Swiss National Bank with their target choice for the Euro above 1.20 may not be sufficient.

The expected loss is too intense at this point and no interventions including the previous and current ones have an answer to take an immediate authority over the prevailing condition.

With these efforts looking like half-hearted donations, unsurprisingly, the Yen is running a ten year high trade against both GBP and EUR. There may be an upsurge in calling for action on the Yen – and now its a matter of when, not if, the BOJ steps in.

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