Spike: What happened just now?

Hi,

I create this thread is for the purpose of discussing sudden price change in all major pairs, including, EURUSD, USDJPY, GBPUSD, etc.

From time to time, there are sudden price impulses for unclear reasons.

I hope with this thread, traders can share information about what exactly is happening for producing abnormal price impulses.

Hope this thread is useful.

kk007

Anyone has any idea about what happen to USDJPY and EURUSD for the last 30 minutes?

I'd say the Central Bank of Japan just fired a warning shot.

and we missed this shot up

Hi Auxesis,
not sure about it, because Mr Fujii made the following statements this morning ....


Adds more remarks from Fujii.)

By Megumi Fujikawa and Tomoyuki Tachikawa Of DOW JONES NEWSWIRES TOKYO (Dow Jones)--Japanese Finance Minister Hirohisa Fujii reiterated Wednesday that the Japanese government would take appropriate steps to counter abnormal moves in the dollar/yen exchange rate.
"We would consider taking some kind of measures if the foreign exchange market moves abnormally," Fujii said at a press conference.
But "we are now at the stage of monitoring the market calmly," he added, suggesting that Tokyo still regards the current strength of the yen as consistent with acceptable market activity.
His comments came after the dollar fell to Y88.07 against the yen late Wednesday, its lowest level since Jan. 23.
Fujii's repetition of his previous statements indicates that the Japanese finance ministry isn't considering immediate intervention in the foreign exchange market.
Fujii also said that the Group of Seven industrialized nations share the view that current dollar/yen moves are the result of the dollar's depreciation, rather than the yen's appreciation.
"The dollar's weakness is largely triggered by speculation that current accommodative monetary conditions will continue in the U.S." Fujii said.
"Current foreign exchange moves are in line with that," he added.

-By Megumi Fujikawa and Tomoyuki Tachikawa, Dow Jones Newswires; 813-6895-7559; [email protected]; [email protected]
(END) Dow Jones NewswiresOctober 07, 2009 05:35 ET (09:35 GMT)

Disclaimer: Be aware of possible Cow Dung included ;-)

Mamood,

Humm, maybe so, not sure, but when it broke .07 and touched 88.00 whamo.

Nothing like cracking a ruler across the hands to teach a lesson

Thanks auxesis,

My take profit was 88.00, it was missed by less than 1 pip (followed by entering of a fake breakout), and the price suddenly ran to hit my stop loss, which is double my take profit.

Really bad.

kk007

My take on this:

I believe the first part of the move was engineered by major market participant around London lunch time, to make the market believe, that BOJ is intervening. Then the market got nervous and started to unwind JPY long positions quickly, which caused the strong continuation of that move ....

Yeah - we will never know

Could be, but one thing I'm sure. those that were long Yen, are needing a change of underwear.

Made a lot of pips this morning USDJPY short and squarred out for lunch.
So I was fortunately not in the market at that time. I guess I would had to use a leveraged flip to save my life ....

Just for info again:

1123 GMT [Dow Jones] "Someone with deep pockets," is pushing USD/JPY higher right now, traders say. Pair abruptly soared after a dip to the 88 level failed to trigger option-related stops. Official intervention is not the culprit, traders say, but large accounts are behind the move, which is having a knock-on effects in other pairs. USD/JPY trades at 88.80. EUR/USD has dipped under 1.47. (KJM)
(END) Dow Jones Newswires
October 07, 2009 07:23 ET (11:23 GMT)

Disclaimer: Be aware of possible Cow Dung included ;-)

Anyone knows what happen to GBP?

If nobody knows, perhaps, some big player has made discretionary decision to buy GBP in once London open and before rate change announcement today.

Anything is happening to EUR/USD?