Massive Forex intervention

Swiss National Bank Press release

The Swiss National Bank (SNB) considers the Swiss franc to be massively overvalued at present. This current strength of the Swiss franc is threatening the development of the economy and increasing the downside risks to price stability in Switzerland. The SNB will not tolerate a continual tightening of monetary conditions and is therefore taking measures against the strong Swiss franc.

That was last night with the Swiss National bank.

Tonight the Bank of Japan is doing the same thing. That news is still pretty fresh and not seeing any official press release that's linkable yet, but you can see the intervention in both the Dollar and the Euro.

The Japanese Yen has gone wild in the past minuted of trading, rising at light speed from 77.10 to just find resistance at 78.00. At present, the pair is correcting, reaching 77.70 only to rebound higher towards the high end of its recent swing high. With no apparent reason (Update: Noda confirms Japan intervened), the Yen's sudden depreciation suggests the BoJ may be finally taking action instead of just watching. Update: USD/JPY continues to rise, now at resistance 78.40. Read more: community.nasdaq.com...

Forex: Yen surges on confirmed BoJ intervention



I am seriously reminded of the extreme overnight shennanigans from '07-'09 right now.

reply to post by jefwane


Ummmm... Well....


Post or it didn't happen..

reply to post by My.mind.is.mine


Mis post, hit submit early and closed all windows after that had to go back and get the links again. Still looking for something linkable on the BoJ news.

how do you loose links
did they wonder off into the forest

I use to go to a bar in rio called shenanigans

Bank of Japan intervention agan
The Japanese yen sank against the U.S. dollar in Asian trading Thursday, following a market intervention by the Bank of Japan to weaken the local currency, in light of sagging performances from Japanese export companies.

In early Asian trade USD/JPY hit 76.99, the pair's lowest since July 29; the pair subsequently consolidated at 78.69, soaring 2.15%.

The pair was likely to find support at 77.35, Monday's low, and resistance at 79.46, the high from July 12.

Approaching mid-day trading, the Japanese yen plummeted against the U.S. dollar, with USD/JPY spiking from 76.99 to 78.35 in a matter of minutes, prompting speculation that the Bank of Japan had intervened to weaken the Japanese currency.

Bank of Japan Gov. Masaaki Shirakawa later confirmed intervention on the part of the government saying that the central bank "strongly expects that the action taken by the Ministry of Finance in the foreign exchange market will contribute to stable price formation in the market."

The BOJ move comes a day after the Swiss National Bank cut its key lending rate and took further measures to prevent the Swiss franc from rising beyond record-level highs against the U.S. dollar.

Meanwhile the yen moved sharply lower against both the euro and the British pound with EUR/JPY up 1.93% to hit 112.55, and GBP/JPY climbing 1.89% to hit 128.97.


Read more: community.nasdaq.com...

In 2.5 hours US/JPY went from 77. to 79. now on pullback

Implications?

reply to post by TheOneElectric


yen way to high. Killing their exports. need it lower to maintain price advantages
although dollar has been going up, lt will crash after qe3 later this year

reply to post by TheOneElectric


Things are not well in the world financial system despite the distractions. I think the SNB intervention is more interesting than that by the BoJ. You can almost call the intervention by the USD/Yen level BoJ was pretty consistent with that before the quake/tsunami. SNB action is rarer. I do wonder why governments and CBs when they want to weaken their currency use the Forex markets instead of just raw printing.

I watch Forex but am by no means confident in the competence of my opinions there.

us/jpy
There are large stops above 78.10 and 78.30. On the downside, there are corporate and real money bids between 76.40-50 and stops below 76.00 and 76.15.
I use Oanda for currency trading and they have a good live news link
news-aggregator.oanda.com...

reply to post by jefwane


the Swiss franc may slow down with its lowered interest rate
but is still the best safe haven for money