- Some comments and informative chart from BCA Research reproduced here.
- "However, for currency intervention to have a long run impact, it must occur with a change in monetary policy.” In any case, there is little chance that the BoJ will ramp up its quantitative easing measures sufficiently to make a difference.
- Furthermore, comments by a top Japanese government official following the intervention will likely invite further speculation on the yen: Chief Cabinet Secretary Yoshito Sengoku was quoted as saying that the Ministry of Finance (MoF) “seems to "think” 82 yen per dollar needs to be defended. By drawing a ‘line in the sand’ the MoF is only persuading currency traders to test the BoJ’s resolve.
2 comments:
Hey TS, are you still short JPY after the intervention?
Cheers,
Pandu
No. I have been long JPY (short USD/JPY) all this while.
That was the plan - 1. long some JPY. 2. wait for intervention to add on which is what I did.
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