Hello,
Long time reader, first time poster. Love these forums, have learned so much in my short time as a forex keiki (kid).
I have a question for you guys. Rumors call for Japans QE9 next week. My understanding of QE effects on exchange rates is [I]usually[/I] a “sell off”, because the money that floods the market reduces bond yields. Yet since Japans yields are so ridiculously low already and the pair is used in a lot in carry trades, could a QE actually boost the currency pair (ie above 80).
So my question: Do you think that QE9 could actually increase the USD/JPY pair, it just past the 80 mark today and I’m tempted to go long (demo account), but I’m not sure what the effects of a QE would be on the pair.
Thanks for the time,
Haole-pip