ASSIGNMENT IN

BUSINESS FINANCE

CURRENCY PROFILING

SUBMITTED BY: SUBMITTED BY:

MR. MATTHEW ONG MR. EDDIE H. CASTILLO
POPE JOHN PAUL II SUBJECT TEACHER

DATE SUBMITTED:
SEPTEMBER 21, 2017
 Japanese Yen
1. FULL NAME: OF
CURRENCY

The currency abbreviation or the currency symbol for the Japanese yen (JPY), the currency for Japan. The yen is
2. DESCRIPTION OF made up of 100 sen or 1000 rin and is often presented with a symbol that looks like the capital letter Y with two
THE CURRENCY horizontal dashes through the center. The yen was originally introduced by the Meiji government as a measure to
modernize the country economically.
The yen was first seen in 1872, replacing the mon currency of the feudal era. The yen lost most of its value by the
end of World War II and was pegged to the U.S. dollar in 1949. When the U.S. went off the gold standard in 1971,
the yen was devalued again and has been a floating currency since 1973, rising and falling against the dollar with
the international exchange rates.

Japan
3. COUNTRY ORIGIN
Japan is a sovereign island nation in East Asia. Located in the Pacific Ocean, it lies off the eastern coast of the Asian
mainland, and stretches from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the southwest.
4. COUNTRY
DESCRIPTION Japan is a stratovolcanic archipelago consisting of about 6,852 islands. The four largest
are Honshu, Hokkaido, Kyushu and Shikoku, which make up about ninety-seven percent of Japan's land area and
often are referred to as home islands. The country is divided into 47 prefectures in eight regions; Hokkaido being
the northernmost prefecture and Okinawa being the southernmost one. The population of 127 million is
the world's eleventh largest. Japanese people make up 98.5% of Japan's total population. Approximately 9.1
million people live in the city of Tokyo,[16] the capital of Japan.
 The Japanese Yen is weaker against the US Dollar as a new week gets under way, possibly thanks to widespread
reports that Japanese Prime Minister Shinzo Abe is mulling an early election.

Abes battered approval ratings have bounced back to near 50% in some polls and local media have quoted
CURRENCY government and ruling party sources as saying this might be enough to see him go to the country. Abe governs in
PERFORMANCE: a collation of his Liberal Democratic Party and junior partner Komeito. He is reported as having told
representatives of both that he might dissolve parliament following the convening of the legislature on September
28.

Reuters reports that one option might be to hold a snap election on October 22, when three by-elections are
scheduled currently. Others might be later in October or in early November, after an expected visit by US President
Donald Trump. Political sources reportedly told the wire service that Abe will make the call when he gets back
from a US visit on September 22.
 USD to JPY JPY to PH PESO

2013 104.19500 0.43786

2014 109.41123 0.43668

YEARS OF
PERFORMANCE
2015 125.60500 0.37367

2016 110.28000 0.48168

2017 113.90196 0.46511

 GRAPHICAL
PRESENTATION
(JPY to PH PESO)

2013 2014 2015 2016 2017

 GRAPHICAL
PRESENTATION
(USD to JPY)

2013 2014 2015 2016 2017

 Since the end of 2015, the chart of gold prices in USD looks like a mirror image to the USD/JPY exchange rate. The often-proposed
explanation that both gold and the JPY act as safe haven assets clashes with the fact that the yen unlike gold - has not proven
to be a good store of value over time. We thus believe the reason for the recent high correlation is an entirely different one:
PERFORMANCE OF The yen and gold have moved closely together because then dollar-yen exchange rate is driven by a similar underlying force as
CURRENCY gold: real-interest rates. Since the beginning of 2016, the chart of the USD/JPY exchange rate looks like a mirror image the USD/
XAU rate. And it is not just the daily chart; intraday the yellow metal and the yen follow each other almost tick for tick. For
example, on 15 March 2017, the day of the latest rate hike by the US federal reserve, the yen and gold moved exactly in line.
The Japanese yen fell to a four-year low against the U.S. dollar on Thursday as investors continue to welcome moves by the
Bank of Japan to boost the nation's economy.
The dollar rose above 100 for the first time since April 2009.
The move was driven by renewed optimism about the U.S. economy following strong readings on the nation's job market, said
Kathy Lien, managing director at BK Asset Management. The yen has plunged 14% against the dollar so far this year as Prime
2013 Minister Shinzo Abe has pushed the Bank of Japan to stimulate the nation's economy. Japan, the third largest economy in the
world, has been mired in deflation for a decade. Abe wants the BOJ to do "everything possible" to achieve its target inflation
rate of 2% as soon as possible.

USDJPY responded to a critical support confluence in the second half of the year around the 101-handle this region is defined
by the 50% retracement of the 2011 rally, the 1999/2000 lows, former trendline resistance extending off the 1998 & 2007 highs
and a median-line extending off the 2009 lows. The exchange rate could not register a weekly close below this mark and as of
2014 12/20 the subsequent rally has marked the largest quarterly advance since Q3 1995 and the largest quarterly range (ATR) since
Q4 of 2008. If this was just a zoom & retest of the 2014 breakout, the broader outlook would remain constructive while above
this key threshold heading into 2017. Note that a parallel extending off the 2013 highs converges on the June high and highlights
possible near-term support at 111.45.
 The Japanese Yen finished the week notably lower versus the US Dollar but stuck to its long-standing trading range. A big week
for FX markets ahead might be enough to finally force a break in the slow-moving US Dollar/Japanese Yen exchange rate.
A sharp US Dollar rally pushed the USD/JPY to fresh 8-year highs through March and yet the pair has consolidated ever since. It
has been a virtual stalemate for the Dollar and the Yen as both the US Federal Reserve and Bank of Japan have given relatively
little reason to force a fundamental shift for either currency. And indeed this past weeks uneventful monetary policy decisions
2015 from both the Fed and BoJ maintained the status quo.

The Japanese Yen, Indonesian rupiah, New Taiwan dollar and New Zealand dollar were among the Asian currencies that
appreciated against the US dollar in 2016, with the Japanese yen showing the strongest year-to-date performance against the
dollar at 2.91%. The US dollar also fell 1.91% against the New Taiwan dollar, 2.28% against the Indonesian rupiah.
The Japanese currency has been rallying since July 2016, despite the central banks efforts to boost inflation and expand.
2016 The yen climbed 100.32 to the dollar on September 21 after reaching its peak on August 26, with the Bank of Japan declaring
that it would seek to control bond yields across different maturities. On the last trading day of 2016, the dollar strengthened by
0.45% against the yen, with the yen closing at 117.07 against the US dollar.

USD/JPY remains in an obvious downtrend from the last significant peak July 11s 114.06. On a daily closing basis, that peak
was itself lower than the previous notable top, May 10s 114.30. Another bad sign for any remaining bulls. Moreover, recent
2017 falls are only an acceleration of the more gradual downtrend thats been with us all year. Thats just about where the latest
foray lower bounced between August 11 and August 14. It seems to be the most significant obvious barrier to progress lower
now. Its easy enough to see why this might be so. 108.80 is the lowest point for the currency pair short of the outright 2017
nadir of 108.11, hit on April 17. If the 2017 lows do give way this time then the whole climb up from last Novembers 101 area
will be back in obvious question. Even if they dont then the familiar downtrend of this year will certainly remain in place, but it
will still be a gradual affair. That said a break lower at some point looks inevitable unless the bulls can show a lot more fight than
weve seen recently.
 In Japanese Yen to US Dollars, it is clearly seen that during the
year 2015, Japan reached its peak staying on top of the
currency, meaning, Japan, has a good economic status during
GRAPHICAL that year. Obtaining the 125.605 in exchange rate is not a joke,
DESCRIPTION the government does not just maintain their status but even
beat USs rate. In my opinion, 2015 was their best
performance in terms of currency.
On the other hand, while hardworking to overcome USs
rate, they didnt focus other countries such as PH Peso
during also, the year 2015. Gaining an average exchange rate
of .37, it was observed as one of their worst production in PH
Peso. Its clearly seen that if they focus too much on
something, they will mess up to the other one. Good thing
that they come back so fast during the following year.