Ikon Forex – A forex dealer in one of a giant bank in Tokyo said on Monday (August 23) that the uncertainty of whether the Japanese prime minister Naoto Kan and the president of the central bank Maasaki Shirakawa would meet and have a discussion on the developments in the economy and the financial markets was increased, therefore the interbank forex brokers buy in JPY which lead the forex rate of USD/JPY and the forex rate of EUR/JPY slumped in the forex market.
He said the possibility of the delay of the meeting was becoming larger and larger in the forex market. The financial minister in Japan Yoshihiko Noda also said he heard that Naoto Kan and Maasaki Shirakawa would hold a meeting in this week in the forex market. And this proved that the possibility of the delay of the meeting was enhanced.
This forex dealer said the forex rate of USD/JPY might continue to slump in the forex market and the demand for the private investors to buy in USD/JPY at around 85.00 was reduced. The supporting point at bottom for the forex rate of USD/JPY was at 85.00. But if stop loss was triggered at around 84.40, the forex rate of USD/JPY would slump to 84.00 sharply in the forex market.
The forex dealer said the Japanese exporters were holding a wait and see attitude in the forex market, waiting for the forex rate of USD/JPY to surge up to 86.50.
The forex rate of USD/JPY was at 85.33/37 at 10:47 Beijing time.
Edited by Laura.