Forex Trading with poor USD sentiment.

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. the USD, suggesting 95.00 might be an appropriate price. Friday saw PM Hatoyama make a rather strange public rebuke of new Finance Minister Kan. This could have been handled in private! Hatoyama said that the government should not make public comments on exchange rates, and that stability is desirable and that rapid moves are undesirable. In response Kan agreed with the PM saying that the markets should determine exchange rates but added he must give sufficient consideration to expectations and hopes held by the business sector on the yen exchange rate.