The JPY has been making gains against other currencies quite a bit as of late and while this is not good for the island country's export economy it is a great currency to trade on the Forex currency exchange! The bank of Japan's numerous efforts as of late to curb their currency's value in an effort to make their exports more appetizing has only resulted in failure. However China's recent rise to economic power has meant the value of their currency, the Yuan has been gaining in value. Once the Chinese currency rises to the former prominence of the US dollar the Japanese will again have a full time customer whose currency is compatible with their own.

As of late demand for Japanese goods has seen a decrease in America due to the lack of disposable income possessed by many Americans. Large TVs and expensive cars have become something Americans can now live without leaving Japan scratching its head with where to take its export economy. Being the second largest economy in the world Japan has set its sights on China, an emerging super power sure to shortly take the world by storm.

Chinese purchasing power has grown exponentially in recent years and shows no sign of slowing. The hunger of the Chinese consumer is no less than that of the American consumer and as the Yuan appreciates in value China will shift from its role as exporter. This shift has been a long time coming and Japan is all too ready to accommodate their large neighbor to the east with all the goods they might need. Those on the Forex currency exchange should keep a close eye on the amount of export/import going on between China and Japan. These two countries have grown very close and given that the west has been crumbling Asia is poised to lead the world's economy into the 21st century.