Why can't BOJ raise rates ?

"Fellow traders i see this yen pairs crawling to heaven through a rope that does not have a tail end but keeps forming and leading dem up and it seems dey will never plunge into hell as it is especially seen in eurjpy cross.
Well as it is all clear, dis ridiculously low interest rate of the yen has been a major factor if i am right cos dey have made a lot of investors including many japanese demselves to borrow loans to buy higher yielding assets outside the country. this offshore investment has contributed to d continous depreciation of the yen since mid march dis year now. I can say that close to 75-80% of recent fundamentals have been in favor of tthe yen, but no way it keeps depreciating ! shuuuuuuu !
WELL WILL DIS CONTINUE ? OR WE EXPERIENCE A REPETITION OF MASSIVE CORRECTION LIKE LAST YEARS EVENT THAT OCCURED BETWEEN JULY AND AUGUST?
AND BY THE WAY, WOTS PREVENTING BOJ FROM RAISNG RATES ? ARE DEY NOT ALSO POSED WITH HIGHER INFLATION ?

Japan got into the lowered interest rates sometime back, in order to bail out fo a mortgage crisis like the one the US is currently involved in.

They like to keep their currency de-valued to promote their export based ecomomy.

Right now, Japan is not doing too well based on ecconomic indicators. This really does make their Yen worth less, and with the rise in value of the the EURO and CHF doesn't help in those 2 crosses.

The Japanese ecconmic data ususally grows a lot during the late summer to early fall (Yen rally) due to exports of merchandise (especially to US) for Christmas. Don't look for major Christmas orders from US, this year -- for sure!

Of course, the thing that really pumped the Crosses today was the US FOMC data. And US Stock mkt was up.

EUR/JPY came within a few pips of all time highs of 169.50.

But have you also noticed major buying of the crosses when things get scary between Israel and Iran? I personally think that is part of what is keeping them in buy mode for up so long. Maybe prevent the correction for some time.

Last year, almost everybody was trading the crosses, so the voliatility was much higher than this year. The whole market is down somewhat, as al economies are suffering. Plus markets are flatter -- it seems like more problems come from the G7 and G8 meetings than ever this year in their effort to control currency values.

Do you remember last year when the crosses were almost topped out? Remember the series of mini-unwinds that occurred before the big one?

This year, the crosses are slow all the time, unless they are moved by news.

What comes up, must come down, though. I think this year the market correction may possibly occur as just a trend reversal -- gradual, with no unwind to speak of at all. I hope not, because unwinds are easier to profit from.

You may remember that last year's correction ended about Aug 22, with EUR/JPY at 149.50.

This is just my opinion, but I hope it helps somewhat.

Good luck with your trading -- Don't get caught in a reversal!

TG