The Yen has defied all reason for its strength. With most of trading controled by computer models, if so many programs key in on the same market elements then currency price distortions occur.
In the real world of business Japan is struggling for 2 decades with deflation. That situation gets reinforced by trading algorithms. So the BOJ may be behind todays move by pushing back against the auto pilot algos.
There was a time a rising USDX meant risk on, hard to believe but true.
The US economicaly is in better shape then Europe, the USDX should reflect that.
This move in the USD/JPY is strong today and the price action appears similar to lifting interventions in the past. I extended that thought into this possible scenario. The markets have been shifting around something this past two weeks. I may be out in left field on this but better to see the train coming then get hit by it.
It has also been rumored that 77.00 level was where the BOJ would come in. Fairly close to that today's low 77.429
In the real world of business Japan is struggling for 2 decades with deflation. That situation gets reinforced by trading algorithms. So the BOJ may be behind todays move by pushing back against the auto pilot algos.
There was a time a rising USDX meant risk on, hard to believe but true.
The US economicaly is in better shape then Europe, the USDX should reflect that.
This move in the USD/JPY is strong today and the price action appears similar to lifting interventions in the past. I extended that thought into this possible scenario. The markets have been shifting around something this past two weeks. I may be out in left field on this but better to see the train coming then get hit by it.
It has also been rumored that 77.00 level was where the BOJ would come in. Fairly close to that today's low 77.429