Why Has The EURJPY Not Come Down Yet?

The Japanese Yen has now lost value for a significant period of time VS its major counterparts. This de-valuing is asserted directly to the de-vestment of the Japanese Yen, typically a safe haven currency.

The stance of the BOJ is still one with very low rates. Because this isn't changing quickly and there is no current intervention speech, the Yen remains a currency that is devaluing.

The equation is simple - If you had the choice to buy a currency, with any type of return, as a foreign cash investor, what would you pick?

Would it be something like the USD? Would you perhaps park your money in Euros?

Or, would you buy Yens with a terribly low rate of return?

You can see now the picture is obvious, and that is why the Yen pairs like EURJPY are rallying relentlessly.

What would bring these pairs down? JPY Strength.

What would bring JPY strength? Rising of rates / Intervention or any other means possible to increase investment in Yens, like a world event requiring a safe haven to flee to.

In any case if you are going to short it, you need to know the above to trade safely.