Archive for Japanese Yen

USD/JPY: Top 10 Largest Moves and How the BoJ Responded

The sell-off in USD/JPY this evening is one of the top 5 largest moves ever for USD/JPY. Whenever USD/JPY experiences such sharp volatility over a short period of time, the Bank of Japan usually comes in to quell the volatility. The following table shows the Bank of Japan’s actions in response to the [...]

Japan Radiation Levels - What do they Mean?

According to this morning’s reports, Tokyo officials say they detected 0.8 of a micro-sievert of radiation in the morning, which is about 27 times what’s considered normal. A chest X-ray typically involves a dose of 20 micro-sieverts. In contrast, radiation readings in Kitaibaraki city, about 43 miles (70 kilometers) south of the Fukushima nuclear [...]

Video: Impact on Japanese Earthquake

I was on the CBC’s Lang and O’Leary Exchange Friday night talking about the impact of the Japanese earthquake on the Yen. Click on the image to access the video and fast forward to minute 51:48. I’m on until the end.

Chart: How JPY has Reacted to Past Quakes

This morning’s earthquake in Japan was the strongest in more than 100 years. The last time Japan experienced a quake even close to the 8.9 magnitude was in 1995 when a 7.3 quake hit the coastal city of Kobe. As we have seen in the price action in the foreign exchange market, risk aversion and [...]

USDJPY: Prime for a Breakout?

Since the beginning of the year, the trading range of USD/JPY has been getting tighter and tighter. However with the Japanese fiscal year coming to an end this month, there is a good chance that we could see the recent ranges in USD/JPY broken. Contrary to popular belief, repatriation has provided little benefit [...]

Will a Second Round of Japanese Intervention be Effective

Back from Vegas last night and on the Business News Network this afternoon talking about whether a second round of Japanese intervention will be as effective as the first. Click on the image to access the video

The Japanese Have Done it! Kan’s Politically Savvy Move

The Japanese have finally done it! Yesterday, I wrote that “even if Kan was not actively considering physical intervention to weaken the Yen before the elections, he will have warmed to idea when he wakes up in the morning and finds USD/JPY trading below 83.”
Warming to the idea was apparently an [...]

JPY Breaks 83: Time for Intervention?

Prime Minister Kan won the elections last night and Yen traders have interpreted his victory to mean a more relaxed approach towards intervention. This may be true when compared to the pro-intervention stance of Ozawa (his challenger) but the rapid appreciation in the Yen against the U.S. dollar AND the Chinese Yuan has also [...]

Outlook for JPY, GBP, EUR, USD

I was on the Business News Network this morning talking about today’s developments including the Japanese elections, the prospect of intervention, the UK CPI numbers, the reason why euro is weak and U.S. retail sales. Click on the image to access the Video

How Election Outcomes Could Affect AUD and JPY

If you have read the international papers, you may know that there are two political developments that is worth paying attention to.
On August 21st, Australia held general elections for Prime Minister and if you recall, the votes were so tight that nearly 2 weeks later, there is still no clear winning. [...]