Will the Yen Surge? When the FED and BOJ Diverge?With the potential of the Federal Reserve lower rates and the possibility that the BOJ will increase interest rates, this could be a great trade. The BOJ has kept interest rates in the negatives for quite some time and after years and years, inflation was able to manifest itself and push the BOJ to be one of the last Central Banks of the G7 nations to increase rates. I am thinking with a divergence between the FED and BOJ, price could move lower to the 130 lvl. If the 150 lvl is breached and price is able to hold above it for a significant time (after the BOJ and FED meetings in a few days) , then traders and investors will likely push price above the 152 lvl. The BOJ may attempt to conduct Forex operations, but with the amount it has done so far, it would likely have minimal effects and will likely be forced to raise rates and/or adjust its YCC further. Either way, I think the over trend is going to be to the downside.
Do your own due diligence when placing a trade trade. Manage your risk. You could lose more than you put in. Y'all have some great trading out there.
