Put it like this: Japan´s loss is the USA´s gain... jobs wise. So I don´t know if it is that safe to play this pair on the long side, it is a falling knife. The US big players are delighted with this trend going against retailers, a confirmation of this trade will be the NFP by the end of the week, if it is a good print I will expect this pair to keep falling past the BOJ, Azzumi etc etc.
Bernanke is responsible the usd/jpy falling, so Uncle Sam is squarely in the picture here.
EZ issues is responsible for eur/jpy falling, generally speaking.
So, does BOJ get into this and piss Uncle Sam off? Do they wait until SNB get into it and then jump in to lessen the USA growling?
It's a difficult situation for Japan. They can outspend SNB easily, and last time they intervened they spent $20 billion.......they have the money and more to do that. SNB doesn't.
So it will be interesting to see how this plays out, and my guess is the NFP will be the signal for both central banks......but we just don't know for sure.
One thing is for sure, someone on this thread is going to have kittens if and when BOJ act....huhu
Doing what you like is Freedom. Liking what you do is Happiness.
