BoJ (Bank of Japan) intervenes for the first time since 2004 in the currency market after the Yen reached at 15-year high versus the USD (hurting Japanese exporters). According to rumors they are throwing JPY 200-300bn (USD 2.4-3.6bn) on the market. Not huge, but it draws a line in the sand. Unless other central banks join this line will be tested, probably within days. Another chance for central bankers to embarrass themselves.

Every nation wants to have a weak currency now – but, unfortunately, not everyone can be weak without at least one major currency being strong. So the race towards destroying one’s currency is on. Zero interest rates, printing money, what’s next? Negative interest rates? It all plays into the hands of gold.

Japanese Yen per US Dollar. Source: FxStreet.com