BoJ Intervention

If you were Masaaki Shirakawa when would you intervene again? Above, below or at the same price level of the last intervention and for what reasons?

Against the Japanese yen, the dollar recovered from a slight decline to trade at ¥83.40, compared with ¥83.31 late Friday.

While the Bank of Japan is “widely expected to leave its policy rate unchanged at 0.1%, it may announce further easing measures against the background of persistent [yen] strength,” said Mitul Kotecha, global currency strategist at Credit Agricole CIB,in a note to clients.

The risk that Japanese authorities will intervene in currency markets again may prevent the dollar from slipping further against the yen, but “the market is increasingly testing the resolve of the Japanese authorities,” Kotecha wrote.

Strong dollar support is apparent around the ¥82.80 level, with the authorities “unlikely to allow a break below this technical level in the short term,” he said.

Japanese officials intervened in currency markets last month when the dollar fell under ¥83.

Source: http://www.marketwatch.com/story/dol...teid=rss&rss=1

So I will take that as 'the same level' then

Sure, it is a waste of money but in their eyes they are trying to save their export market and in turn their economy. The BoJ are stuck between a rock and a hard place.

Wouldn't intervention at the same level be too obvious? If that were the case I will create a long order at 83.00 with a SL below 82.80. I just don't think it is that easy!

Isn't that the point? Lots of jawboning about intervention at a line in the sand helps their cause....until it doesn't! It's worked before, pretty much no-brainer trades, like candy from a baby.

I think the problem now is everyone is trying to play the same game, no-one wants a strong domestic currency.

Buying around 83 seems like a reasonable plan, smaller positions with wider stops and then just wait to see who wins the battle!

If it breaks then they'll probably be a cascade of stops hit, that should be fun to watch lol

Well there are two options left... below price or I wouldn't do it again. Let's see what the BoJ are going to do...

G7