There is considerable expectation that with tonight’s monetary policy announcement – The Bank of Japan will be adding to its current easing program – and continue to expand its balance sheets.
What does this mean to me as a trader?
It will likely contribute to further Yen weakness if indeed further easing is announced……and provide for some excellent trading opportunities.
Regardless…..as money generally flows “out” of safe haven currencies (such as the Yen and the U.S dollar) and “in” to risk related currencies (such as the AUD and NZD) I see fantastic trade opportunities developing in pairs such as AUD/JPY, NZD/JPY as well as CAD/JPY.
The Australian , New Zealand and Canadian currencies are often referred to as the “CommDolls” in that these countries are large producers and exporters of such commodities as gold, silver, and oil.
So…..What would anyone consider the Yen a safe haven?