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21:00 GMT- Jan 8 (global-view.com) Forex traders hit the round running in the new year. It seems like a month since the New Years break already. What makes things difficult has been uncertainty on how the USD should be trading. Last year ended with a widely-held perception by non-forex professionals that it was now time for the USD to trade higher mainly what seems to be cyclical reasons. We don't buy the cyclical argument in favor of the USD, but do feel the unit is currently undervalued against Europe and that Japan has special issues of its own which will have to be addressed in part by a weaker currency.
In the latest week, Japanese Finance Minister Fujii stepped down for health reasons. Mr. Fujii was the architect of what we have felt was an inappropriate policy of encouraging the JPY to strengthen vs. the USD at a time when the government is trying to combat deflation. The Japanese press has been speculating that DPJ kingmaker Ozawa forced Fujii out for policy reasons. Recently elected PM Hatoyama replaced Mr. Fujii this week with his Deputy PM Kan, who almost immediately started to talk the JPY down vs.Forex forumreal time forextrading forums.
