20 Oct BOJ Intervention Rumours
A quick post to update on an unqualified rumour that I first became aware of through a Bulletin Board post, parts of that post I’ve reproduced below.
Further research into the validity of the rumour does suggest there may be some truth in it and although the original source doesn’t have anything to gain from trading it, subsequent sources potentially do.
It is understood that a swift intervention to 86 / 87 is in the works, coordinated with several institutions. This is also considered seasonally weak for the yen which may add to the credibility. Sumitomo Mitsui Financial group are alledgedly colaborating an effective model that closely resembles the SNB actions.
The source understands it will be swift with no warning. Further investigation into the background of this information notes that intervention could take place as soon as next week.
Do I believe it? Put it this way, I’m not convinced at all because too many people in the rumour chain do have a lot to gain. But, it has put me off trading anything other than perfect set-up’s on Yen pairs and I would consider using a Guaranteed stop loss if trading the long side (Yen).