Type up in Japan

[camllloxumizvamela]

Hello everyone, I just wanted to know if it makes sense to operate GBP/usd (my favorite pair

[angusyok]

Hello, I do not think that a possible rise in rates of the Bank of Japan has a great impact on GBP/USD.You can find useful information about currency correlations here: http://www.mataf.net/en/analysis-correlation.htm Greetings.

[minemu]

Excellent link!Thank you!

[camllloxumizvamela]

The best link of all!Thank God for this forum.Thank you!

[xavi15673]

What pairs are planning to operate with this announcement?Will they stay with USD/JPY?I was thinking that if the rates do not upload, maybe it is worth buying Chf/JPy or GBP/JPy.But if they end the zero rates policy (ZIRP

[be93]

What is PPP?Quoting UBS has the purchasing power parity (PPP

[2222]

PPP means purchasing power parity.It is calculated by comparing the cost of a basket of equivalent goods in different countries.Basically, the JPY has been very weak compared to its theoretical value due to zero interest rates for so many years.If the ZIRP ends, the Yen should get closer to its PPP (although, obviously, there are other factors at stake

[camllloxumizvamela]

So, if I understand well, have the market already deducted the possibility of a raised rise in Japan?If the ZIRP ends, will we really see a sustained strengthening of YEN or just a short -term speculative movement?I worry that if I enter an operation waiting for a great fall in USD/JPY, I ended up getting caught in a false break.

[saama18]

Exactly, the market usually anticipates these movements, but the true reaction depends on the statement of the BOJ and the future expectations.It is not enough for rates to upload, investors want to know if this is the beginning of a bullish cycle or a specific adjustment.If only rates go up but maintain a moderate tone, Yen could strengthen a little and then weaken again.For a sustained movement, they would have to suggest more increases in the future, which I doubt they do.

[xx88pmegapkm88xx]

It has always seemed funny how people believe that a single announcement will change the trend of a pair like USD/JPY.The Yen has been a weak currency for years and a single rise in rates will not suddenly make everyone runs to buy it.If the BOJ does not change its monetary policy position in general, this will only be temporary noise.