Here's what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention

[forex4you]

Here's what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention

<p>I posted this back in June when USD/JPY had leapt rapidly higher. Its done so again and the chatter of BOJ yen intervention is all over the place again. </p><p>So I'll repeat it. </p><p>we have seen intervention, its just been in verbal form. </p><p>All those remarks about wanting FX to move stably, yen moves not to be too rapid - you've heard all these many times in the past months as the yen has dropped. they are a first-stage intervention. Mild stuff but effective to begin. They quickly lose their impact though.So, what about actual intervention, that is, the Bank of Japan entering the FX market to buy yen? (Please note the BOJ will conduct the operation, but it'll be at the direction of Japan's Ministry of Finance - thats how they do things in Japan).What you want to be listening out for is more specific, and it'll go very much like this, key phrases to be aware of:we do not want to see one-sided moves in FXwe do not want to see excessive moves in FXFX movement is not reflecting fundamentalswe will not tolerate speculative movementThe Ministry of Finance will combat excessive moves</p><p>Watch out for those. I will be and will let you know also.</p><p>---</p><p>Its just after 8.30am in Tokyo and USD/JPY is up[ 50+ points from its early Asia lows already:</p>

                This article was written by Eamonn Sheridan at forexlive.com.

Source: Here's what to watch for to warn of imminent Bank of Japan (BOJ) yen intervention

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