AUTOREFRESH 
Japan may be forced to join China in the intervention game
You have to hand it to Japan. For years, all their regional trading partners have manipulated their currencies to remain competitive with China while Japan has kept a hands-off policy toward the JPY. Looks like that policy may be coming to an end.
The BOJ may be forced to actively manage its currency along the lines of South Korea, Singapore, Taiwan, Malaysia, et al… That would lead to greater imbalances and a surge in the Japanese current account which will further distort US and European monetary policy as Japan looks to park the proceeds of its intervention into the capital markets of those economies.
Those global economic distortions are largely responsible for the mis-allocation of liquidity into every-riskier assets in order to try and generate meaningful returns in a low interest rate environment, setting the stage for another bubble and another crisis several hears hence.
Can you please add some more details.. why and how will it affect.. Thanks.
China buys massive amounts of dollars and euros to keep its currency weak. Japan could do the same…become a constant presence in the currency markets…
Long usd/jpy 84.97 if it gets hit. The gbp/aud long worked out well. It’s in no mans land now. Eur /Jpy touched the 20 sma as predicted. Good morning JC.
Well if they buy a load of US dollars, when the US starts to recover, they will have made a good profit on the returns. So whats stopping them? polical pressure from other areas?
N what happens to the usd when the news is good and not great?
Partly, yes. Plus they already have a trillion $ dollar reserves.
Hart you think to short term, I doubt many cetral banks look at much lower then a daily chart if that.
Yep your right on with that one N !
This could be a week of scalping, galore.
[...] Japan may be forced to join China in the intervention gameForexLive (blog)The BOJ may be forced to actively manage its currency along the lines of South Korea, Singapore, Taiwan, Malaysia, et al? That would lead to greater … [...]
I would love to get long eur/jpy just a bit above 106.25.
Hart I hope you get the chance as I am short from 109.50 and would love to pick up about 80 more pips.
Like a glove John! Smart trade @ 109.5 Good Job!
hey JC spin us some youtube. Maybe some old Talking Heads?
Smart, lucky, whatever. I just took a chance that japan was just mouthing off again….
Hey John you may want to t/p before potus speaks.
Although the 50 is about to cross the 20 on my m15. eur/jpy
200 sry.
I kind of expect him to say something stupid and make the market drop even further. I would imagine his people are trying to take advantage of the upswing in the market Friday and let him talk while everything’s looking better for the moment….
I would love some Chinese cook book recipes.
What’s that called, when a currency opens lower and closes higher on a intraday chart/
The 1hr usd/jpy chart looks promising long. The 4hr looks iffy. There is a nice resistance level along 86. If it moves up I would be looking for 50 pips at best. Tight stops for me. I’m game for a small play though, and lowered my entry into 84.8′s.
[...] Jamie Coleman || September 10, 2010 at 18:16 GMT || 0 comments || Add comment …when you can’t be bothered paying them yourselves… Share and [...]