Yen Open Opportunities to $ 102 at Mid-Year

Learn Forex News : Bank of Japan has just announced a super aggressive monetary easing to accelerate the pace of the national economy. Currency and stock market participants welcomed the authorities and optimistic about the future of Japan's growth.

The Nikkei jumped 2.2% after the company had fallen about 2% before the BOJ's decision was announced. The exchange rate of 92.90 yen immediately jumped (before the announcement) to the 94.80 and 95.00 levels have penetrated within hours. Currently the exchange rate USD / JPY monitored at the level of 95.37 and continued to strengthen. Dealers in the money market rate estimate could reach the level of 95.50 yen to 96.00 at the end of the day Friday. Purchase of long-term bonds worth 7 trillion yen, including assets with maturity of 40 years, was a surprise to market participants.

However, the euphoria of post-market central bank policy is expected to last much longer. According to Callum Henderson, head of FX research Standard Chartered, investor response 'just begun'. "We can wait for more aggressive action and preparing for a new phase of easing," he said. He also predicted the exchange rate yen weakened against the currencies of major-currency for a longer period of time and not just a daily correction. Standard Chartered maintain the target exchange rate of USD / JPY at the level of 102 at the end of the second quarter of 2013.