JPY crosses/USD/JPY

BOJ: Expands asset buying program by Yen10 trillion

EUR/JPY popped up on first reaction but with no mention so far of inflation targets it fell back pretty quickly; 111.00/50 still containing prices.

No change in interest rates but the statement does say that long-term stability will be reviewed in January. The Yen bears will not be disheartened I feel.

  1. Sean, with your years of experience in the markets how do you read the price action in the Yen pairs after the BoJ statement? It’s been nearly half hour after the statement. If you had to take a side now, would you enter long or short UJ?

  2. The market seems to be answering with a move down in both UJ and EJ. As you said in the ranges you gave, UJ has to convincingly break 84 and 83.70 for this to become a decent retracement.

  3. Looks bearish to me Zen, statement was dovish giving hope for target change in January yet mkt can’t rally. I’d say USD/JPY will test 8350 again in next few hours

  4. Yes, currently overbought at high levels on the daily, combined with the new greek doubts as well as cliff talks turning negative, all adding to the case for some long profit taking.

  5. I think it’s time for the yen crosses to roll over too, but those fiscal cliff negotiations could totally throw a spanner in the works. No more short term trades for me in 2012!

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