2022 Yen Investment Outlook: Best Buying Timings

The Korean won and the Philippine peso (PHP) are predicted to be the weakest currencies in Asia.

As a result, many Koreans are increasingly interested in currency investment in each country, such as investing in the current dollar, which is a strong dollar.

What is the outlook for the Japanese Yen (JPY), one of the leading reserve currencies?

The Japanese yen has maintained a low yen through continuous zero interest rates under the influence of 'Abenomics'. The purpose, of course, is to stimulate the economy by releasing money in the market.

If you look at the chart, the yen is currently maintaining a steady low (the yen's value is low). Although the US is raising its key interest rate significantly and Korea is slowly catching up, the Bank of Japan (BOJ) has said it will keep interest rates at zero. However, for the first time in 24 years, the Bank of Japan and the government intervened in the market to defend the exchange rate by selling dollars and buying yen. However, cards that raise interest rates are unlikely to be used. The Governor of the Bank of Japan has taken a firm stand on that point. But since no one knows what the outcome will be, Yen investment will eventually have to be focused on how far Japan can hold out.

Japan's Consumer Price Index (CPI) Of course, when prices rise, the Japanese people suffer.

Because the US influence is so strong in the financial markets, it seems difficult for Japan, the second largest holder of dollar foreign exchange, to escape the influence. Inflation has already begun, and its upward trend is not formidable. Of course, they are better at protecting against inflation than other countries, but the Japanese government will need to make some big decisions to defend against the moderate inflation rate that the Japanese government likes.
However, long-term investments that are too long may not be good for investors. This is because the main purpose of the Japanese government is to maintain the yen and stabilize the domestic and foreign economy by controlling the volatility of the yen. Therefore, rather than setting a target price that is too high, it seems better to set the target price up to the normal low yen price in the current low yen situation.

The following are materials on the response of the Japanese government.

"It is estimated that Japan bought 3 trillion yen (about 29.7 trillion won) by selling dollars on the 22nd to prevent the depreciation of the yen. It was reported on the 27th."

"Previously, the maximum amount per day that the Bank of Japan and the Japanese government intervened in the market by buying yen was 2.6 trillion yen on April 10, 1998."

In summary, this is the first government intervention in 24 years, and the last intervention was the 1998 Russian financial crisis.

The low marked by the yellow line is the point when the Japanese government intervened in the foreign exchange market. Since this is the first intervention in 24 years, the homogeneity of the results is very high.

Looking at the chart, it seems that now is not a bad time to enter the yen investment. However, setting a target price can be tricky, but that will be covered later.

For your reference, there are two ways to invest in yen: go to a bank and apply for currency exchange directly, or purchase yen futures ETS from the stock HTS you are using.

Information on Japanese yen investment and setting target prices will be discussed next. thank you.