Wed, 15 Sep 2010 09:31:00 +0200

Forex: Yen minor crosses rally on BoJ intervention

FXstreet.com (Barcelona) - In a surprise move this morning, the BoJ announced new intervention measures to counter the strength of the yen which has been weighing heavily on the Japanese recovery. In particular, the government intends “to sell the yen to curb its gains versus the dollar and its major counterparts, which threaten an export-led recovery.”

Minor crosses of the JPY are soaring on the news, with the EUR/JPY up from yesterday’s highs around 108.00 to consolidate above 110.00 in the opening hour of the European session. The pair currently quotes at 110.78 as it looks to break past 111.000 resistance.

What’s more, the GBP/JPY is coming off levels near 129.00 yesterday to reach above 132.00 so far. Currently the pair quotes at 132.12 showing a gain of 2.34%. Rajoo C of PreciseTraders.com writes: “The GBP is Weak and JPY is Exceptionally Weak, so the JPY may drag the GBPJPY higher, so the Bears have to be Sidelined.”