As of February 25, 2022, Ukraine has allowed the invasion of Russian troops and the capital Kiev is being attacked. Ukraine is isolated and is likely to fall soon, with no military support from Western countries and the United States. Perhaps this was foreseen, the Japanese yen is being sold in foreign exchange. Normally, the Japanese yen should always be bought in the event of an emergency such as a war, but for some reason it is being sold.
Ukraine is likely to fall. Russian troops have also killed many Ukrainian civilians and have been criticized for humanity. Anti-war protests are widespread in major Russian cities, but are being armed by authorities.
Why Japanese Yen is Sold
The Japanese yen is almost always bought in an emergency such as a war or a plague. But in this war the situation is a little different. The Japanese yen is being sold in inverse proportion to the situation where Ukraine is being cornered. There is a deep reason for this.
On February 24, the UN Security Council submitted a resolution calling for an immediate withdrawal of Russia’s invasion of Ukraine, but Russia vetoed it and China withdrew. The United Nations can also be seen as dysfunctional.
Ukrainians are expecting military intervention by NATO forces. However, at present, NATO troops are only sending some troops and avoid active intervention. This indecisive attitude is making Russia bullish and putting Ukraine in a pinch.
The US military has also increased the number of personnel to 7,000 in Eastern Europe, but it does not have the power to fight the 200,000 Russian army, and it is not possible to participate in the war in earnest. The United States is concentrated with Chinese sanctions and cannot reach Eastern Europe. Also, because China is behind Russia, it is difficult to reach out.
Both European countries and the United States impose economic sanctions on Russia, but they have no effect on Russia. Russia is one of the world’s leading exporters of natural gas and oil, and both the United States and Europe rely heavily on Russian resources. Sanctioning Russia also means cutting yourself off, so you cannot actively sanction it. Putin knows that and is able to attack Ukraine.
Exchange forecast for next week
Traders have already seen that Europe and the United States have problems with China and resources and cannot actively intervene in Russia. The Japanese yen is being sold to prove it. It is expected that the weakness of Europe and the United States will continue from next week onward, and the Japanese yen will continue to be sold. The Australian and Canadian dollars may continue to skyrocket as crude oil prices soar. On the other hand, if there is military intervention in Western countries, it will turn into a plunge market.