It seems that the USD/JPY market has bottomed out as a result of the sudden drop in oil prices. However, this time around, the US dollar will stay on top. As the economy recovers from the recession, and as the Federal Reserve begins to raise interest rates, this will continue to happen over the coming years. This is good news for the US economy, and the US dollar. But, what does this mean for those investors who are not so familiar with the stock market?
USD/JPY: No Bottom In Sight
Since the currency market is still a complex market and is highly volatile, it is important that you are able to understand some of the factors that are affecting the values of USD/JPY and the interest rates being offered by major banks. Many people are speculating that if the Federal Reserve raises interest rates, that would cause the exchange rate of the US dollar to move in the opposite direction from its current position. Of course, this is not going to happen, and there is no chance that the United States will see a negative depreciation of the USD/JPY.
So, why are there a lot of investors who have been losing money on interest rates? The main reason is that the economy is still on recovery and is not yet at full strength. There are still major companies out there that are in the business of making investments.
These companies are going to be able to leverage their profits from their investment and purchase additional shares of the company’s stock prices. Now, these companies will want to keep the price of their stocks up, because they can take advantage of the rising value of their shares to make further investments in the company. This is going to continue until the economy gets back on its feet, which will take several more years.
Companies can also take advantage of a situation like this to start selling off their stock quickly. They can sell off their shares for a quick profit, which will allow them to make a quick exit from a market. This can be a great way to make some easy money, but it is never a smart thing to do when your money is at stake. If you are investing in the USD/JPY, you need to do a little more research, and find out whether or not the market is going to stay strong.
