The center stage is still focused on the Japanese crisis that has been the highlights in all the financial markets. Not withstanding the blow of the earthquake and the tsunami but including the nuclear meltdown currently occurring in the already damaged nuclear facilities near the epic center of Sendai in the Northeast side of the Japanese capital in Tokyo.
Although, the first immediate reaction of the FX market for the yen to have gained strength against a possible loss in value is now being supported by the BOJ infusion of liquidity in Yen value to sustain the market's jittery reaction to the drop on the Nikkei stock market. Understandably, the aftermath of these occurrences have to lead to a recession-like for Japan in the next few months. Until such time that they do have a stronger grip of the situation regarding containing the probable nuclear fallout from the nuclear reactors.
Although, BOJ and its Finance ministry would not allow this to happen in an abrupt manner, though the eventuality would still be the same. the overall market reactions from the foreign exchanger market has been a mixture of market prices behaving rather irrationally. As the prospects for a USD led recovery has been slowed even further with the third largest economy dampening slower growth across the board.
So what does this mean for the Forex market?
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