Just like two days ago, when for the first time since 2011 the BOJ intervened directly in the USDJPY market, moments ago Kuroda’s trading desk once again decided to sell a boatload of Yen, with the key carry pair trading at 111.25 and threatening to take out the 110 support, in the process sending the USDJPY higher by 175 pips in a matter of seconds to just above 113.
The move quickly filtered through to all other asset classes:
- QUICK JUMP IN YEN, DOLLAR; S&P FUTURES PARE LOSS TO 32PTS
However, just like last time the BOJ’s direct intervention – seen as a last ditch effort when all else fails – the impact is already fading and traders are already counting down how long until the BOJ’s attempt to pull a PBOC is fully faded.
via Zero Hedge http://ift.tt/20Xltbo Tyler Durden