BOJ Intervention Rumours

BOJ Intervention Rumours

A quick post to update on an unqualified rumour that I first became aware of through a Bulletin Board post, parts of that post I’ve reproduced below.

Further research into the validity of the rumour does suggest there may be some truth in it and although the original source doesn’t have anything to gain from trading it, subsequent sources potentially do.

It is understood that a swift intervention to 86 / 87 is in the works, coordinated with several institutions. This is also considered seasonally weak for the yen which may add to the credibility.  Sumitomo Mitsui Financial group are alledgedly colaborating an effective model that closely resembles the SNB actions.

The source understands it will be swift with no warning. Further investigation into the background of this information notes that intervention could take place as soon as next week.

Do I believe it? Put it this way, I’m not convinced at all because too many people in the rumour chain do have a lot to gain. But, it has put me off trading anything other than perfect set-up’s on Yen pairs and I would consider using a Guaranteed stop loss if trading the long side (Yen).

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4 Comments
  • rhubarb
    Posted at 19:57h, 21 October

    My thinking on this now is that BoJ don`t need to react just yet (if they are going to soon). The Dow has a bit further to rise probably and then could do a bid fall, hence $ large rise and yen down.
    They`re waiting for your weekend update to corroborate this, RS!

  • RS2OOO
    Posted at 22:12h, 21 October

    Hi rhubarb,

    Just to say thank you for the original lead on the BOJ Intervention information.

  • ematrader
    Posted at 07:46h, 31 October

    I’ve been doing a bit of work on Daily/Weekly/Monthly cycles of late and I was commenting to a friend in the city last week that the USDJPY looks oversold on all three of the above time frames.

    What I would like to see now is a back test of the recent low over the coming weeks / months for a potential long term long position.

  • Weekly Swing Trading Round Up 4th November 2011
    Posted at 01:09h, 05 November

    […] pip profit. Probably the best single overnight gain I’ve ever made and it has to be said, the BOJ rumours I previously discussed were a great influence in my search for a tasty looking Yen […]