A walk-through my BOJ Intervention play

There’s not a lot to say about the USD/JPY today. Everything that had to be said I think occurred a week ago with the test of 76.00. What I did want to outline here were the clues, the price levels, and the thinking behind the buy set up and the trigger of 76.00.

Being oversold in a sideways market and confirmation with the Stochastics was just one layer of a play that saw no acceleration below 76.00 and therefore a hesitation by traders to embrace 76.00 as a ceiling.

The delay in the BOJ’s action came from the last-minute China/EFSF story…and I outline why that was worth waiting for on behalf of the BOJ.

I have more videos like this at my You Tube channel.

  • Raghee Horner

    Ok, so sarcasm aside, the BOJ-induced rally has carried the USD/JPY higher to the 200 day SMA. No newsflash there. But the point of the video is to outline that the set up really triggered a buy entry a week ago, last Monday to be exact, when the 76.00 was broken and the previous August 19 low was tested. A break of 76.00 was generally feared to be the level at which the BOJ would step in but their delay emboldened USD/JPY bears and caused prices to sink just below the “00” prompting the BOJ countdown. China delayed the process a bit adding some drama to the situation…but the trade was triggered on Monday, October 24 with the 76.00 test. That’s what I share with you on the video and how you can identify these types of decision levels regardless the circumstances.

    • Owen

      Are you looking for another long JPY play, as the yen strengthens against the euro and loses much of its ground from the intervention.  Do you think they are essentially going to set a floor around 76 and try to hold that line (however futile)?