In late July 2011 Japan’s gold and currency reserves exceeded the level of $1,150 trillion (+1.1% as compared to June).
According to the Japanese Ministry of Finance, this is the first increase over the last 2 months. Some experts say the reason is a decline in the US long-term lending rates, which increased the US T-bond yields.
It is expected that Japan’s gold and currency reserves will be growing because of a new series of currency interventions aimed at making the JPY exchange rate favorable for Japanese exporters.
It should be noted that Japan’s reserves consist of securities, foreign currencies, gold and US bonds.
FOREX.
According to the Department of Masterforex-V TS, USDJPY made a new low, returned back into the range of Daily/weekly and broke the MF pivot with a strong upswing.
The future succession of events will be determined by the MF sloping channel. If it is broken USDJPY will finish its downward wave 5/A of Weekly and will start forming at least a bullish retracement. Otherwise, it will continue the downtrend in the form of the “Hound of the Baskervilles” pattern by Elder/MF of Daily.
