USD/JPY strategy: how do you manage the intervention tail?

USD/JPY pays you for the rate gap and threatens you with intervention. The strategy question is how to hold yen positions when a silent several-hundred-pip move can arrive any minute.

USD/JPY strategy: how do you manage the intervention tail? — support and resistance diagram
Price bouncing between support and resistance

What's your answer?

  • how you size USD/JPY versus other majors
  • the levels or signals that make you cut
  • whether you prefer yen crosses and why
USD/JPY strategy: how do you manage the intervention tail? — pip movement diagram
How a pip moves the exchange rate

The intervention guide covers the tail risk in depth.

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