Desk talk USDJPY: BOJ may be looking to buy (or state they are looking to buy,) which lets face it, is pretty much the same thing, a few lumpy JGB’s. As previously posted on LI, with the help of a graphic video from Reuters, the the BOJ is moving away from outright bond purchases to YCC (Yield Curve Control) via their Three Arrow policy. We are getting near to 0.1% on 10 year yields which i’m told is a no no. I didn’t ask why. Sometimes it’s best not to. All a bit of talk but buying USDJPY along with broad USD firmness in London may a decent call if the current trend continues.
Swapped the TV screens for the trading screens.
Philosophy: "Define your risk, only then can you ignore it"
Read how Patrick got into trading here
Philosophy: "Define your risk, only then can you ignore it"
Read how Patrick got into trading here
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There’s plenty of room to do so and maybe the Japanese market wouldn’t even mind right now, being in a bond selling mood. Economic data don’t support the move but he …..
It would have a pretty well timed psychological effect after the BOJ/MOF/FSA meeting, ahead of FOMC and the US labour report . It’d have the same effect as buying usdjpy and forcing some weak shorts out. It may put USDJPY close to 110 going into the US data .
Thanks for your comments K-man.
All good considerations and yes the market can more than take it. Also, we are nearing 108.10 and 107.50 which i quite like. Not a bad coincidence if it happens. He he