Green = Interest Rates.

Red = Nominal Spot Rate.

Blue = Effective Trade Weight Index.

Chart

The period runs from 1980 to 2023. The spot rate trading above the Effective Trade Weight Index is correct in any trade year or period because the Effective Trade Weight Index is factored to Oil and GDP for monthly releases to Imports and Exports.

The Green interest rate line represents pre 2016 negative rates.

USD/JPY Vs Effective Exchange Rate Index for June to represent the period from 1996 to 2023.

Blue = Nominal Spot Rate.

Orange = Effective Trade Weight Index.

Overall, fairly big move from June to December was seen early.

Chart

BOJ interest rates

BOJ Interest Rates dropped in 2008 /2009 then traveled to negative in 2016. From 2016, interest rates failed to move.

The period covers 1990 to 2023. As 2024 approaches and promises to central bank drops to interest rates, the BOJ will remain on hold and not move interest rates by 1 point. 

Chart

Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.

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