It’s setting up on all Jpy pairs. Not only will they cascade, but all JPY pairs will cascade together. No amount of Yen selling will be able to stop it. No one can tell when it will happen, but when it does, it’ll be very fast and very painful.
The BoJ has to know this as well…
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Lol, “scam wicks”!
I hadn’t noticed this at all, but thanks for an extremely interesting post. For anyone interested, there’s a free online cascade simulator available here.
Wow, thats a cool simulator. Very accurate to what will happen.
The Bank of Japan will know exactly how much liquidity is at the levels by calling around. They may save some reserves and only need verbal intervention to trigger an event.
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Yes, I see. They must be the world’s most interventionist and most manipulative “national bank,” I think?
When I stated Forex the BoJ would intervene because the Yen was too strong. They called the bottom the last Yen liquidity dump just after Fukushima.
That intervention in response to a sub-80 UsdJpy was a coordinated effort from all G7 Central banks at once.
From the Bank for International Settlements:
FX Intervention: Goals, Strategies and Tactics
By Nikhil Patel & Paolo Cavallino
https://www.bis.org/publ/bppdf/bispap104b_rh.pdf
Now for another market microstructure phenomenon, the liquidity vacuum or void in liquidity.
Overwhelming sudden supply has erased any latent sellers from the market, making it easier for demand to run up in an attempt to find fair value. This is how the “A” & “V” shaped charts are created.
What are the blue lines for?
Just marked where groups of sell stop orders are concentrated