ight so im just trying to figure out the reasons behind japans massive selling of its currency as well as how long the effects of something like this lasts in the market. last night the usd/jpy skyrocketed but today it is seemingly going down. does a massive buy or sell like japan did raise or lower the “par” that it had been at for a long time or is it a short term thing that lasts a day or two? and also why would japan want to inflate its currency? i figured it would want to reduce inflation as much as possible.
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The reason why BoJ (Bank of Japan) intervened is because the Yen has gotten too strong which means exporters aren’t making as much. Japan is big on exports, and the country is trying to come back after the earthquake/tsunami. There are many factors why they did this.
Exact intentions of BoJ are unknown as they keep their lips shut, but this is overdue. Verbal intervention from BoJ has been going on for the last couple weeks. We’ll see if it continues this asian session.