The IMF has recently downgraded its assessment of the Japanese economy, indicating that Japan’s economic growth in 2016 is likely to be worse than what was originally expected. Bank of Japan comments reinforce this view. In order to help alleviate these problems, things like negative rate expansions have been considered, BoJ meetings indicate. Further quantitative easing is also being considered.
The economic picture for Japan is not very good right now, which would lead many traders to believe that going long with the yen is a good way to take advantage of this in the Forex and binary options markets. However, the evidence that we’ve seen so far isn’t very supportive of this path. The yen has seen its shares of struggles, especially against the US dollar, and a long term trend for the yen is still up in the air. (more…)