BOJ afoot

.

Let's all use 3 word sentences :

I'll go second:

Got any proof?

Yeah let me have Fukui call you.. after hes done with his broker.

Laughing out loud

DJ newswires reported 116.00 is being defended..

There is a paper on BOJ intervention, maybe you should look it up. And watch the tick action.

I'm sure the option defenses and the flows from that massive investment trust have nothing to do with it...

FYI, Kampo was on the bid last night around 117. No sign of them since. I wouldn't put too much faith in a "BOJ inspired" turnaround from these levels. Your report is nothing more then another Jawboning from the Japanese govt.

http://www.washingtonwatchdog.org/do...109_26370.html

On September 11th, the Prime Minister was re-elected with
tremendous support. An issue that he based his re-election on
was the privatization of Japan's post-insurance arm, the Kampo.
I understand legislation will move toward the Diet to reform
Kampo by offering a competitive environment for the United
States insurance industry. United States life insurers make up
an estimated $38 billion in annual policy premiums in Japan. As
Tokyo moves forward in privatizing Kampo, a transition period
will take place. Regardless of the amount of time the Japanese
deem necessary to transition into a competitive market, I urge
the Japanese to conduct the Kampo reform in an open and
transparent process which will eliminate any hint of unfair
practices. A transparent process is tremendously important.
I am also concerned about regulations imposed on the
medical device industry. The decision to establish
reimbursement rates based on foreign pricing is perplexing. I
look forward to hearing from our witnesses addressing this area
as well.
Finally, during our focus on China and its currency peg, I
have heard a number of times that we should not overlook the
Japanese yen. Over a 3-year period, 2000 to 2003, the Japanese
Government took steps that thwarted the yen from appreciating
significantly against the dollar, making U.S. exports to Japan
more expensive and Japan imports to the United States less
expensive. While the yen has raised almost 15 percent against
the dollar in the last 2 years, many economists feel that it is
still undervalued. I look forward to hearing from our witnesses
regarding the Japanese yen.
Mr. Chairman, I appreciate today's witnesses and their
willingness to educate us on this bilateral relationship. I
hope to hear their views about whether the recent election will
usher in reforms. I look forward to working with my friend, Ben
Cardin, in addressing these concerns and others raised this
afternoon. And I yield back.

Now, the IMF clearly states that members should avoid
manipulating exchange rates in order to gain an unfair
competitive advantage over other members and defines such
manipulation as protracted large-scale intervention in one
direction in exchange markets. Since 2000, Japan has intervened
over 400 times, spending over $420 billion. As a result, Japan
has seen a massive increase in its reserves, growing from $345
billion in July of 2000 to over $840 billion.
Now, we heard from the earlier panel that Japan has not
intervened since the first quarter of 2004. That is true. But
it is important to keep in mind that Japan spent $150 billion
in that one quarter alone and announced that they had budgeted
another $1 trillion to intervene in currency markets. With an
intervention of that magnitude and a commitment to continue
intervening, is it any surprise they have not needed to
intervene further?
Now, this intervention, the cheap currency translates
directly into competitiveness. We estimate that in the last
year alone, the cheap yen resulted in a subsidy to Japanese
manufacturers of approximately $3,000 on a small car going up
to $12,000 on a large luxury car. For those who question
whether this matters, all you have to look at is the first-half
results announced by the Japanese auto companies. Collectively,
they reported $1 billion in additional earnings as a result of
the weak yen.
It is precisely for this reason that the WTO, the IMF, and
the Omnibus Trade Act address the issue of currency
manipulation, yet Japan has been able to do that without any
consequences.
On behalf of General Motors, I urge the Committee to give
greater attention to our ongoing trade and currency problems in
Japan and to see how directly these issues are related to the
competitive problems American manufacturers face. There are
responsible actions that Congress and the Administration can
take. You can insist that these unfair currency practices
cease, and if Japan or another trading partner continues, they
must understand there will be consequences. The Congress and
the Administration should make clear they will make full use of
U.S. and international trade laws to discipline unfair currency
manipulation. The bottom line is in a world where we have much
more open trade, currency valuation makes a tremendous
difference, and when we allow a country like Japan to
manipulate its currency to the advantage of their
manufacturers, it comes as the detriment of our manufacturers,
us and our employees.
Thank you again for the opportunity.
[The prepared statement of Mr. Mohatarem follows:]

Not sure what a 2005 trade relations report has to do with the yen being defended ahead of 116 on September 26, 06. I don't dispute that they do it, what I'm telling you is that they aren't doing it at the moment.

Big deal, Bush was supposed to have reformed the tax system, saved medicare and social security, and captured bin Laden already. Campaign promises don't mean a hill of beans in the real world.

And even if they wanted to spin off Kampo or open it up to competition, it doesn't negate the fact that, today, they are the primary mechanism through which the BOJ manipulates the Yen. There are no sovereign bids on the market, and there haven't been any since 2004. If there is no Kampo, no sovereign, and no Norinchukin orders hitting the bid, the BOJ isn't defending anything.

Your compiling a whole bunch of anecdotal evidence, mashing it together, and trying to pursuade people of a conspiracy that (at the moment) does not exist. If we were having this discussion yesterday, I would have agreed with you. Today, your evidence is without merit.

10-15 minutes...watch what happens.

116.39 now..10:41

OMFG!!! Spectre your a genious! Please please tell me how you KNEW the BOJ was going to deploy it's Trillion dollars in forex manipulation reserves to move the price 3 pips??? I simply must know!

nah.. id rather enjoy the 3 pips.....

laterz..this is my last post here..at this site.

I want all my posts deleted.. here. at this site.

Well, now ya did it Darkstar..U chased him away...I hope he's kidding, I'm sure u were .... I listen to your knowledge of the market Spectre!!!!

Spectre,

You would be missed if you left us!!

I think you are very dedicated to getting it right and your opinions are highly valued by many here.

Although I am mainly a technical trader I need to know a little as to what causes the sentiment behind the moves. It kind of completes the picture.

Nobody expects anybody to get it right all the time so it's up to us all to trade with care.

Hope you continue to post your valued insight

btw...it's lunchtime here in Japan right now and the country stops for an hour.

Cheers

phil this is the second time today that you have brought tears to my eyes.