G7 Joint JPY Intervention On The Horizon?


(JP) Japan Fin Min Azumi reiterated that equity market level is not reflective of actual corporate performance; G7 needs to have a common understanding on the global economy.

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(JP) Japan Fin Min Azumi: Main topic was about Europe and G7 agreed to work together on Spain and Greece

  • Conveyed concern over JPY currency strength to G7 members
  • Did NOT discuss Greece leaving the EMU.
  • Noted JPY currency appreciation has been ‘sharp.’
  • Japan told G7 it is also concerned about the decline in equities.
  • Japan asked G7 to reaffirms its stance on excessive forex volatility and disorderly price movements; no opposition to its request on FX agreement.

How to interpret this headline?

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I believe the reason why JPY was sold off after Azumi’s comments was because of the speculation that Japan may call upon the G7 nations for another joint jpy intervention, this is following the sneaky ninja like jpy intervention that took place right after Friday’s US Nonfarm Payroll Employment release, and is adding to the overwhelming speculation that BOJ is going to try some thing soon…

Therefore, in light of this new development, I’m going to stay away from any further JPY buying (i.e. shorting GBPJPY, EURJPY, etc…) but instead focusing on a potential rebound as the market could very well push USDJPY above the 80.00 level, a level where BOJ would feel comfortable.

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About Henry Liu

My name is Henry Liu and I am a Forex Trader and Mentor. I help traders achieve consistent income trading Forex while spending less time trading. My focus in trading is a combination of Fundamental Analysis, Technical Analysis, and Market Sentiment. Far too many retail Forex traders concentrate on just one aspect of trading, technical analysis, and ignore everything else; it is my goal (and vision) to educate every trader on how to take advantage of news trading and become more balanced traders.

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Trackbacks

  1. […] the ninja like move that Japanese Finance Minister Azumi pulled last Tuesday (June 5, 2012), market has been softening its JPY holdings on the possibility of a joint FX […]

  2. […] followed by a string of reports on potential easing from China, U.S., and UK.  The threat of joint JPY Intervention from yesterday’s Japanese Fin Min comments after the G7 conference call also added selling […]

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