The Japanese yen has amazed currency traders with its rapid rally. The yen came under the spotlight last week thanks to its stunning growth.
The Japanese currency has asserted its strength after a nosedive recorded on April 29. The yen tightened its grip on the US dollar, having rebounded from the lowest levels in 34 years. In late April – early May, the yen perked up and developed a rally. Remarkably, the yen traded at 159.5 against the greenback and strengthened to 155.2 in mere 50 minutes. The jump of nearly 400 pips prompted traders to speculate that Japan’s monetary authorities intervened on Forex.
Experts cite Japan’s financial policymakers who warned a few weeks ago that they were ready to prop up the yen in case of extreme volatility. In mid-April, Bank of Japan Governor Kazuo Ueda stated that the central bank would take action if the yen weakened too much.
Analysts reckon that the latest forex intervention of the Bank of Japan was a success because it was implemented during the Golden Week from April 29 to May 5, comprising 4 national holidays.
