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Traders expect intervention if USD/JPY falls back towards lows
By Sean Lee || August 30, 2010 at 06:49 GMT
|| 5 comments || Add comment
It is unlikely that the BoJ will leave matters as they stand after today’s rather insipid developments. If the market insists now on testing their resolve, traders expect the BoJ to enter the market and buy USD/JPY at 84.00, at the latest.
That’s why the bigger hedge funds have placed their bids at 84.50 and below. I’m guessing their motives of course, but the first wave of intervention is often the most successful so the big players try to get on board for that and make a quick profit.
Hi Sean,
84 is probably the unspoken line in the sand that BoJ has in mind, last week we saw big flows around and below that level, and the rise was actually quite fast.
Don’t know now, if expectations have not been met or what, but I think there could be another short squeeze, and then tomorrow possible intervention to go steadily above 86.
How do you see it?
who cares about USD/JPY intervention anyway ? Too Much talk no Action means nothing to Traders. We trade to make profits but politician talk to sway the markets.
Yes agree Francesco. Play a fairly wide 84.25/86.75 range with a s/t bullish bias is my best guess
Perfect Sean, I will.
I just closed a long on GBPUSD and went long EURGBP for the month end story.
Also I am long EURCHF at current levels as it should have finished the big downward stop hunts (hopefully) and again long USDJPY at 85 with plan to double below 84.50
Wouldn’t you expect a stronger chf if yen is beeing sold off by intervention??