February 3, 2012
Looks like the BOJ peeps aren’t as excited to intervene as many market geeks are expecting! We didn’t hear much jawboning from the BOJ yesterday, even when USD/JPY stayed near its record lows at 76.21, while EUR/JPY closed at 100.18.
No thanks to profit-taking ahead of the NFP and a bit of risk aversion in markets, the yen continued to stay strong against its counterparts. What’s interesting about it is that the BOJ doesn’t seem to want to take action against it as much as many forex geeks do.
Apparently, the central bank is hoping that the yen’s recent moves are merely speculation, and that the yen’s value would return to more favorable levels soon. Finance Minister Jun Azumi said that he’s currently watching the markets and will take steps if necessary.
In the meantime, we have economic releases to focus on. There are no reports scheduled for release in Japan today, but the big NFP report is coming up in the U.S. The report usually inspires crazy volatility in the charts, so make sure you have your trade plans ready!
"The only cable I watch is the pound baby."