What is the Impact of BOJ Easing?

Beginner Questions
1

Hi guys,
This question goes out mainly to traders who have witnessed a BOJ Easing before? How many cents does USDJPY usually rally on an easing like this? It’s already up 1 and a half cents, so I’m just curious.

Also, last November, the yen did a similar case of massive weakening across the board and jumped from 98 to 105 against the USD. Does anyone remember the reason for this?

2

I’ve seen a couple of BOJ easing but I haven’t seen a clear pattern in terms of pips. Maybe it’s because the market theme isn’t exactly the same each time?

I also found this Piponomics link: This Week’s Central Bank Jawboning in One Facebook Conversation

USD might have strengthened on risk aversion and a lot of jawboning by other major central bankers.

3

Yeah you’re right and that link is hilarious and unfortunately true about the market.

4

There are differences everytime. We’re in a risk off environment at the mo. Everybody’s playing it safe. Normally the jpy would be a safe bet but their economy’s in a bit of a crisis. Normally the AUD is a safe bet but their control room admittedly want their currency weaker. There aren’t too many safe plays out there at the minute. That makes the world’s reserve currency, the USD doubly appealing to investors and speculators alike.

5

Thanks! I am currently in an AUDJPY long from 97.3. Everyone wants a weaker currency but I figured the AUDUSD seems to have stalled at a long term support and the RBA seems to have the least control over their currency of the other high yielding currencies. So it seems AUDUSD would return to .92 - 0.96 faster than USDJPY would return to sub 110 and so I just need the patience to sit on this trade for weeks or even months - something I have never done before!

I have absolutely no targets since I don’t know what to expect of USDJPY but I would look at things at the end of next month.