USD/JPY watch: what are you watching this week?
A standing thread for the yen. The pair answers to rate expectations and to intervention risk, which makes the watchlist two-sided: scheduled events and the unscheduled ones.
Share:
- the levels you're tracking
- how the Fed-BoJ rate gap shapes your view
- how intervention risk changes your stops
Background: currency intervention explained and the USD/JPY page.
Background: When currency intervention works — and when it fails
Central banks sometimes buy or sell their own currency to move it — and the results range from decisive to futile. Here is what intervention is, when it succeeds, and the tell-tale signs to watch.
What is currency intervention?
A central bank or finance ministry buying or selling its own currency to move the exchange rate — buying to strengthen it, selling to weaken it. The goal is to change direction or cap extremes, not to set the rate permanently.
When does intervention succeed?
When it fights crowded, one-sided positioning, has the fundamentals' tailwind, and is credible — surprising, coordinated or at least verbally prepared. Alignment with policy multiplies the effect.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…