Why does USD/JPY raise so much after BOJ increases 0.5 interest rate? | Forex Factory

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Why does USD/JPY raise so much after BOJ increases 0.5 interest rate?

  • #1
  • First Post: Feb 20, 2007 11:35pm Feb 20, 2007 11:35pm
Why does USD/JPY raise so much after BOJ increases 0.5 interest rate?

I totally don't understand, anyone can explain it a little bit?
  • #2
  • Feb 20, 2007 11:35pm Feb 20, 2007 11:35pm
Sell the rumour buy the news.
Tra-X
  • #3
  • Feb 20, 2007 11:49pm Feb 20, 2007 11:49pm
wait till london opens..
Trade what you see, not what you think.
  • #4
  • Feb 21, 2007 12:02am Feb 21, 2007 12:02am
Then what's your expectation after London market opens?

Betting on Yen going up.... hope I won't lose all my money...
  • #5
  • Feb 21, 2007 12:32am Feb 21, 2007 12:32am
the above comment is true- the price you see now always has news reflected on it.

Also "Yen Declines as Bank of Japan Says Rate Increases to Be Gradual "

google that and you will see.

in any case it will go towards the news or may not, and if it did, it may be after all stops have been gunned down., and in this case it may be 200 pip stop hunting - who knows in this wild world of fx

Welcome to chaos
Pipology 101 student
  • #6
  • Feb 21, 2007 12:44am Feb 21, 2007 12:44am
previous BOJ rate hike also never lift Yen much
  • #7
  • Feb 21, 2007 7:12pm Feb 21, 2007 7:12pm
Quoting followshadan
Why does USD/JPY raise so much after BOJ increases 0.5 interest rate?

I totally don't understand, anyone can explain it a little bit?
The hike was largely priced in already. There was a dovish statement. Carry traders got back in.
  • #8
  • Feb 21, 2007 7:41pm Feb 21, 2007 7:41pm
It's just small increase. US 5% - 0.5% JPY is nothing. So the carry traders got back in.
  • #9
  • Feb 21, 2007 7:42pm Feb 21, 2007 7:42pm
read this we talked about this very issue...
http://www.forexfactory.com/showthread.php?t=18550
Relax and be happy.
  • #10
  • Last Post: Feb 21, 2007 9:28pm Feb 21, 2007 9:28pm
Quoting followshadan
Why does USD/JPY raise so much after BOJ increases 0.5 interest rate?

I totally don't understand, anyone can explain it a little bit?
Pull up a Yen chart and I was following the GBP/JPY but the price action was probably pretty similar in all of them...

Firstly, once the "proposal" was announced the the yen gained...this was 23.00 ish or slightly before...(forgive me if my time is off coz as you will know its been a long day!!!)...

Then came the actual reasoning and statement and that made it clear there probably would not be any further hikes in the near future......perhaps one more at most this year......

So....voila....everyone is back selling JPY....and the price going up....

In short that was the reason....you gotta always look at the bigger picture when these news reports come out......not only the short term but also the long term.......

Hope this helps a bit
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