Intraday Market Thoughts

Japan Intervenes, Yen Pairs +400 pips, Now What?

by Ashraf Laidi
Oct 31, 2011 2:00

Japan intervenes in midday Monday Tokyo trade, lifting USDJPY and EURJPY by nearly 400 pips each to 78.60s and 111.00 respectively. Yen Interventions have proven to be like Halloween costumes, with very limited duration before they lose their effect. The duration of the post-August intervention lasted 1 day. The duration the post-March coordinated intervention lasted about 2-weeks. The duration of the post-September 2010 intervention lasted 1 day. Rather than speculation on the DURATION of today's intervention, we focus on the PRICE. We expect USDJPY and EURJPY to extend moves into the US session, with various phases of bids & pullbacks. 79.30 & 79.80 appear to be the next key targets, with 77.50s and 77.10s likely to emerge as the key support levels. The objective (and hope) of the BoJ is to extend the impact into Fridays US NonFarm Payrolls (NFP), whereby a positive number, will be supportive for USDJPY. Premium Subscribers can view our August piece on USDJPY HISTORICAL CYCLES (still valid) for the key levels above/below which to consider placing stops and entries. DIRECT ACCESS to USDJPY piece here To subscribe, click here:


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