on Thursday (March 24) in Europe in early trading, dollar/yen and Euro/yen is more stable. Near the dollar/Yen remained at 81 interval stabilised consolidate. However, analysts noted that the market should pay close attention to the 80 mark, 110 Euro/Yen concern gate; because of rumors that the European Central Bank (ECB) prepare for intervention the yen again.
President of the Eurogroup, Luxembourg Prime Minister Juncker (Jean-Claude Juncker) revealed on Wednesday, European Central Bank has been prepared, and the Federal Reserve (FED) and the other group of seven (G7) national central banks when necessary, to take measures with intervention the yen.
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Juncker pointed out that the people must know, G7, particularly the European Central Bank, Japan's Central Bank and the Federal Reserve has the three major central banks are ready to take joint measures to combat this trend of preparation.
Juncker also said measures taken by countries once worked before, but again towards Yen exchange rate " error " in the direction of development.
analysts expect dollar/Yen below initial support at 80.8, then was 80.5.
seismic surge of the yen after Japan's Central Bank (Bank of Japan) and the seven major industrial countries (G7) central bankers joint intervention, stem sharp rise. This is the first time the Central Bank since 2000 taking such joint interventions. Japan's Central Bank on March 18 to sell yen and buy dollars, after several European Central banks in the London trading session opened, has taken the appropriate action. The Federal Reserve and the Canada Central Bank (Bank of Canada) in the United States trading hours involved.
above the Central Bank said that interventions aimed at stability of the Yen exchange rate, rather than defend a particular exchange rate levels. But Japan has pledged again to take action, if necessary, analysts generally believe that, if the dollar again fell to 80 line, there will be more interventions.
with analysts on Thursday (March 24), as of now, the total size of about US $ 6.5 billion of the G7 joint intervention may have prevented an appreciation of the yen, but this is not sufficient to change the trend of the yen strengthened.
Deutsche banks (Deutsche Bank) Exchange analyst John Horner said the G7 's intervention has its necessity, but still not enough to change the dollar/Yen weaker medium-term trends. He still expects the dollar/Yen within the next few months may fall to the level 70-80 Middle interval, exchange rate may even drop to 70 first-line level.
Horner pointed out that to significant weakening of the yen, United States first of all, the benchmark interest rate should be increased substantially, but this does not appear immediately. Since the outbreak of the financial crisis, the Fed has been maintaining benchmark interest rate at a record low point close to zero.
he said fed officials continuously expressed the fed for quite some time before the end the era of extremely low interest rates, which the dollar rise to stronger sustained very difficult.
15:52 ' the dollar/Yen 80.81/85, Euro/Japanese Yen 113.65/67.
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