"Analysis Is Hard But Trade Is Easy"
- | Joined Jun 2006 | Status: Ivy Trader | 118 Posts
"Even the word impossible says that I M possible"
17:07 EST and Oanda won't let me close trades in profit 0 replies
Timezone and Sessions Indicators with auto-adjust EST/EDT? 2 replies
what time is the BOJ Rate Decision? 3 replies
What is BOJ's Fukui speaking on tonight? 4 replies
DislikedWow that was unexpected. If JPY can shrug off an 8-1 vote interest rate announcement like that, it could be headed way down. I am going to wait a few hours to let it all settle in, and if the price is where it was before Fukui spoke, I might just go long GBP/JPY.
Any thoughts?Ignored
DislikedIndeed, but I think this will trigger short-term selling preasure on USD/JPY, EUR/JPY, and GBP/JPY. And we have to see how many people vote for the rate hike and read BoJ's statement though since this might be another indication for another rate hike after this meeting.
Bottomline: rate hike would create short-term selling across the board on yen pairs.
Disclaimer: no buy, hold, sell recommendation. (I don't wanna get sued voicing my opinion.)Ignored
DislikedI'd like to see it drop to 233.50/70 before or after news. That's where my limit buy is waiting.
..and I don't consider it a gamble...Ignored
Quoting benajnimDislikedMy personal prediction is rates wont rise. One good GDP figure isn't much for justification, and the Japanese want to keep their currencies weak because it is good for their end of global trade. If they do, I predict the Yen will strengthen (go lower in */jpy) but there is much more downward pressure on this currency because its rates are dirt cheap in general. Its a money party, selling this cheap yen and the bounty will be around until rates diverge substantially from where they are now. Interest rates and value of currency are proportional, but tonight wont be the change in general tide. If the difference in rates between the highest yielding and the yen in the majors gets 100 basis points or so closer, that is when we will start to see roaring surges in Yen (tanking usd/jpy, eur/jpy, gbp/jpy and others).Ignored
Quoting dswkDisliked"I do not think the yen's weakness on the whole is a distortion," he said. The yen's declines partly stemmed from the fact that Japanese investors, including households, are increasingly making investments abroad as they shake off their habit of keeping money at home, he said.
Ignored
QuoteDislikedContrary to popular opinion, the interest rate decision did NOT lead to significant Yen gains. There were two main reasons why the Yen failed to rally. The first was because the quarter point rate hike still left the Japanese Yen as the lowest interest rate bearing currency in the developed world. Secondly, the Bank of Japan indicated that even though they raised interest rates, they will not follow-up the move with another rate hike in the near future and instead will leave monetary policy very accommodative. With no moves since then, we see that the Bank of Japan has left interest rates on hold for at least seven months.