Back in the day, it was thought that the Japanese authorities would whisper in the ear of the Japanese banks their plans for action ahead of time.
Typically, this would be transmitted to the market as “don’t be short JPY crosses over the weekend”, for instance. Today we’re getting that old chestnut again: Rumors are making the rounds that Japanese banks have been told not to be short JPY crosses this weekend.
Sounds like a load of old bollocks, as Gerry would say.
As noted earlier, the global trends are too strong for the BOJ or any central bank to turn. Their only hope might be a global coordinated money printing-palooza. I’m sure rumors of that will grow too.
