In the past several days, people including media like The Financial Times have "warned" the market of possible intervention by BOJ. Based on the past behavior of BOJ, it is understandable for them to expect BOJ to intervene the market for their own reasons or whatever.
But the fact of the matter is that the situation where we are is different from where we were when BOJ intervened the market last time. The BOJ's stance on intervention has changed quite a bit partly because of the international pressure.
My point is that their spreading intervention rumors is like raising the hopes of those who bet on the appreciation of dollars, but in fact they only mislead people to grab a falling knife. This is what is actually happening in the market in the past several days.
By the way, Eisuke Sakakibara, the former Japan's Vice Finance Minister for international affairs, is known as Mr Yen for the influence of his pronouncements on the currency market, talked about the prospect of USD/JPY on local TV here in Japan yesterday. According to him, he clearly stated that BOJ will not intervene the currency market at this level for several reasons, and the pair will break 90 yen by this summer or earlier.
I just wanted to say that blindly believing in and betting on the rumors of intervention could be risky and could easily kill you for a brief flash.
But the fact of the matter is that the situation where we are is different from where we were when BOJ intervened the market last time. The BOJ's stance on intervention has changed quite a bit partly because of the international pressure.
My point is that their spreading intervention rumors is like raising the hopes of those who bet on the appreciation of dollars, but in fact they only mislead people to grab a falling knife. This is what is actually happening in the market in the past several days.
By the way, Eisuke Sakakibara, the former Japan's Vice Finance Minister for international affairs, is known as Mr Yen for the influence of his pronouncements on the currency market, talked about the prospect of USD/JPY on local TV here in Japan yesterday. According to him, he clearly stated that BOJ will not intervene the currency market at this level for several reasons, and the pair will break 90 yen by this summer or earlier.
I just wanted to say that blindly believing in and betting on the rumors of intervention could be risky and could easily kill you for a brief flash.