Giant candles all over the place today! What happened with the Yen?
I don’t think there was any interest rate change right?
I was short USD/JPY for 3 weeks now so this is a nice price fall for me. I just shorted USD/JPY as it was downtrending nicely.
The fundamentals -
Apparently the Bank of Japan surprised the markets by lifting the 10-year yield curve cap to 0.50% from 0.25%. The bank also said it would increase its bond purchases to JPY9 trillion (~$68 billion) a month compared to the current JPY7.3 trillion. Whatever all that means.
The possibility of the BoJ doing something dramatic to support the JPY has been said to be increasing recently owing to its continued downward spiral. I heard this from John Kicklighter on DailyFX. I didn’t pay much attention - it seems the major markets were not entirely surprised as USD/JPY has been selling off for weeks and that’s why I got in short. The big players employ people a lot cleverer than John Kicklighter and me and they had decided this was a sell, so I wasn’t going to fight them.
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Despite the strong sell signal I had on the daily chart, I never did pull the trigger on any of the JPY pairs for some reason. Good job on those who did.
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So bonds stuff that make the Yen increase in price?
You think this trend will continue into the new year?
I don’t have a clue. I’m staying short until price stabilises, then I’ll add another short.
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Paywall on the FT article 
Thanks for sharing the ING article.