Flows and Orders/JPY crosses/USD/JPY

JPY crosses sharply higher

A sharp spike higher in the Yen crosses was caused by macro accounts buying USD/JPY and a big European buying both EUR/JPY and GBP/JPY (must have heard I was selling). Not sure what was behind the surge at this stage. Plentiful sell orders were reported earlier in USD/JPY towards 79.80. The Nikkei has also moved quite sharply higher off earlier lows (almost as if someone’s suddenly heard rumours of easing measures perhaps?)

  1. Yes USD/JPY intervention caused spike in EUR and GBP as well. it will be reversed don’t worry. bernanke is much more powerful than any of the muppets

  2. Easing talk from BOJ + negative trade balance numbers this morning => they hope a new trend is here (finally) upwards in USDJPY…
    In fact the japanese trade balance may be the most important indicator for the JPY.

  3. Sean, you’re probably right. However, just to throw a little bit of spice in the dish, have a look at this:

    http://imageshack.us/a/img198/1607/japantradebalance.jpg

    Well, it’s been about 26 years that the trade balance was positive!!! Now, we are having a trend change… is this going to have an impact on the yen and how to trade this is a totally different story. It could take 5 years to materialize in the USDJPY 🙂

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