Increased trading of Japanese stocks by overseas investors pushes USD/JPY up
When international investors and the Bank of Japan are on the same side of the playground, it is bad news for the yen. At the October meeting, the BoJ noted that the interest rates would be maintained at the current levels or lower until they managed to accelerate the inflation. One board member said the BOJ claimed additional easing measures would be needed “without hesitation” if consumer prices continued slowing down. The proportion of Japanese share trading by foreign hedge funds is about 60%, which is an important driver…
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