Dealing with yen downside risk

BACKGROUND: Dollar/yen has been trading sideways within a seven-yen range during the first seven months of 2003. The yen has managed to avoid the dollar weakness experienced versus the European currencies because the Bank of Japan (BoJ) has intervened massively. However, if the central bank’s ongoing covert operations were to either stop because of politics or be overwhelmed by the market supply, the dollar/yen would collapse.

Problem: How would an FX trader, who expects the BoJ intervention to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact customer services - www.fx-markets.com/static/contact-us, or view our subscription options here: https://subscriptions.fx-markets.com/subscribe

You are currently unable to copy this content. Please contact info@fx-markets.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to FX Markets? View our subscription options

You need to sign in to use this feature. If you don’t have a FX Markets account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: