Yen strength is very likely to continue as a result of speculation and buck vulnerability . There'll be market warning because the US dollar tactics that the 103.5 degree, particularly with concerns on the danger of intervention. When there are any statements over a stronger yuan in the weekend APEC summit the yen will profit next week. The Bank of Japan is very likely to target to impede yen profits instead of reverse the trend.
The dollar recovered the 104.0 amount in Europe on Thursday, however, the US money was just able to border to 104.35 in New York before weakening again.
There have been comments over officials created to impede yen profits with foe example, Finance Minister Tanigaki, saying that Japan would act if needed. The instant focus is very likely to be about the amounts around 103.5. There is very likely to be some unofficial intervention in such amounts through associations. The government are going to want to slow the decline of down the US currency if Japan isn't seriously worried over the degree of the dollar. It seems unlikely that there'll be continuing and heavy intervention.
There'll be speculation over money profits with a focus on China. With President Bush planning to talk to go over the yuan with officials remarks at the weekend APEC summit will be carefully observed, especially within this circumstance. There's a little probability that a policy shift will be announced by the Chinese, even remarks over marketplace reform is the result. Speculation over money profits will continue to provide yen support that is inherent.
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