Forex Mind Games
Private, 1st Class
- Messages
- 49
BOJ intervention??
In my previous preview on USDJPY, i mention of the possibility of Bank of Japan (BOJ) intervening the Yen FX markets. See link below.
http://www.forexmindgames.com/2012/08/week-33-13-17-aug-trade-previews-part-1.html
Thus far, nothing has happened yet. However, i believe the intervention is near. Remember that Central Bankers has political pressure to maintain the stability of their country's currency. Japan is a mainly export country. Think Sony, Toyota, Toshiba and Honda. Japan is a country which relies strongly on their exports, they would prefer to keep their currency weak. When the Yen strengthen too much, high-ranking government officials will voice their displeasures through the media. It is them telling the currency speculators to get out of my turf.
When the same rhetoric such as:
"Watch out and get out of the way!! I am going to do something soon!!"
is repeated multiple times by the Japanese officials, the market is fore-warned. We are the retail traders. We do not have the financial muscles to go against the markets. In the forex ocean, we are the shrimps, and we follow the whales. If BOJ does intervene, watch for a 200-300pips USDJPY bullish spike in a single day.
Potential intervention zone around 75.50-77.00. How to trade this intervention? Open a sub-account. Transfer a small amount of money to this sub-account. Highly important: you may need to hold this trade for weeks. So do ensure you have enough money in the sub-account to meet the weekend margin requirements.
Place a limit buy order anywhere from 75.50-77.00
Stop loss below 75.00
Target profit 80.00
In my previous preview on USDJPY, i mention of the possibility of Bank of Japan (BOJ) intervening the Yen FX markets. See link below.
http://www.forexmindgames.com/2012/08/week-33-13-17-aug-trade-previews-part-1.html
Thus far, nothing has happened yet. However, i believe the intervention is near. Remember that Central Bankers has political pressure to maintain the stability of their country's currency. Japan is a mainly export country. Think Sony, Toyota, Toshiba and Honda. Japan is a country which relies strongly on their exports, they would prefer to keep their currency weak. When the Yen strengthen too much, high-ranking government officials will voice their displeasures through the media. It is them telling the currency speculators to get out of my turf.
When the same rhetoric such as:
"Watch out and get out of the way!! I am going to do something soon!!"
is repeated multiple times by the Japanese officials, the market is fore-warned. We are the retail traders. We do not have the financial muscles to go against the markets. In the forex ocean, we are the shrimps, and we follow the whales. If BOJ does intervene, watch for a 200-300pips USDJPY bullish spike in a single day.
Potential intervention zone around 75.50-77.00. How to trade this intervention? Open a sub-account. Transfer a small amount of money to this sub-account. Highly important: you may need to hold this trade for weeks. So do ensure you have enough money in the sub-account to meet the weekend margin requirements.
Place a limit buy order anywhere from 75.50-77.00
Stop loss below 75.00
Target profit 80.00