Why such crazy fluctuation with the JPY?

Hi,

Why does the JPY fluctuate in the most crazy manner during news time compared to all other pairs?

If you take a look at the 19:50 GMT Sun August 15 2010, the EUR/JPY Fluctuates like mad on the 1 min and 5 min timeframe!

I saw FOUR HUGE 50 pips spike that went UP and DOWN leaving super small pinbars/doji.

Only the JPY shows such crazy price shock movements. Anyone with stop loss orders or limit orders within range would be in for a joke during such times.

hi

Not just JPY my friend.. i had those on AUD/USD .. see my thread on that here http://www.forexfactory.com/showthread.php?t=250933

I dont know , what behind this.. is it just normal stop hunting exercise by fxcm or its tug of war between buyers and seller sitting 60 pips away from each other.

I dont know, may be some one else can conform its just me or they had also those strange bars.. i was lucky that i didn't have any trades on that pair

May be some experience traders can throw some light on this.

thanks.

Ahah, so the AUD/USD had that as well...

I checked a few other pairs but did not see this problem appear on them, except for the Eur/Cad which had some completely flat bars like these: - - - - -

I guess the price feed failed to display any price movement on the 1 min chart during that time due to the heavy spikes in the other two pairs.

I did not experience such problem with the Eur/Usd at that time which is also the most heavily traded and therefore stable pair.

And no, it is certainly not stop loss hunting because I see this occur on two other broker charts which are not fxcm. I don't use fxcm btw.

This happened during news time like I said. It is all the do with how the market reacted to the JPY related news.

I wonder how it affected some of the other pairs that do not contain JPY, perhaps those pairs are more correlated during that time.

probably very thin liquidity

if you ever follow the real market during a news release you'd realize it's the absence of participants (bids/offers).