Rules to live by:

  • Don’t tug on Superman’s cape
  • Don’t spit into the wind
  • Don’t be the only buyer of USD/JPY on a day when all your doing is providing liquidity to the market at favorable rates…

The BOJ seems to have abandoned USD/JPY for the time being after earlier buying some at the 84.75 level. With the market one-sided, they seem to be saying it is better to keep some powder dry than to try and halt a runaway train, to mangle several metaphors.

The smarter play for the BOJ at this point would be to let the market sell itself out before returning to the bid….

USD/JPY has been as low as 84.41.