THE THREAT OF USDJPY INTERVENTION IS RISING

 

“Peter Pan Kuroda in turmoil … WTF do I do now!?”

USDJPY is now up over 600+ PIPS in 7 trading days … we’ve blown through the

131.50 level, then 132 on the way to today’s early high at 133, like a Stihl

chainsaw through a soft stick of butter … the BOJ has sent out every

Apparatchik in the building, including “Peter Pan” [I think I can, I think I can!]

Kuroda to “suggest”, or “talk down” via subtle hints that fast YEN depreciation

is not “good” in the eyes of the BOJ … “how’s that workin’ out fellas?”

… unable to STFU so far, the one thing in the arsenal they have left is to

actually intervene and send the YEN sharply higher “el quicko mucho”!

Like the “Plunge Protection Team” [PPT] in “Stock Bellies”, there’s an M.O. to

central bank stupidity … 1) they don’t intervene to sop up selling cuz that has no

effect, and 2) they will wait for specs to be MAX long in both USDJPY and the

crosses, and will wait for the market to roll over via natural “profit taking” [thank

you Bob Pisani CNBC perma bull hack!], AND THEN come in and

“Thelma & Louise” “bigly & yuge” USDJPY lower BY HUNDREDS OF PIPS WITHIN

A MINUTE OR TWO OR THREE … this will annihilate sell stops of specs and

allow the scumbag bank LP’s to buy the lows and profit handsomely from which

the “skim” then gets shoved upstairs … and as we are now at the

132.50 - 133.000 level, the threat of a panicked BOJ doing something is

increasing … the good news for us, is that there is a very high probability if that

happens, that TEMA will be UNDER VIDYA first, before the carnage starts, and

thus we miss it … not absolutely guaranteed, but highly, highly probable.

So here we are, 5+ hours into this “hot mess”, and it’s becoming a gigantic game

of chicken … nobody wanting to be the first to shove USDJPY up to and beyond

133, and nobody wanting to sell it either … and that’s led to a 20 something PIP

range since Europe opened, with about an hour and change to the NYSE open.

Again today, this isn’t about “risk on / risk off” [RORO], this is all about rate

yields … and eyes are firmly on the U.S. 10 YR. Treasury hugging the 3% level

… Friday sees CPI inflation numbers, and next week on Wednesday, it’s time for

another installment of the Lounge Lizards dazzling us with their stupidity, with a

U.S. rate decision that’s widely expected to see another 50 bps rate hike … “Asia

flies, the rest of the world dies! … do I have to move to frickin’ Thailand to see

consistent trading action? … sure as Hell seems like it … cuz once the lights

come on for the European session and Asia closes, everything dies within

minutes, and today is no exception … the first 5 hours of today’s session for

me is an abysmal, pathetic meat grinder, where USDJPY can’t move ± 10 PIPS

from a median value … quite frankly, can’t do anything with that.

Now into the New York afternoon, the London Fix a non event and Europe is

closed, and nobody in FX gives a crap today about the “Spoos” … that

correlation having disappeared for the moment … it’s hard for me to see

USDJPY blowing out 133 to the upside, until at least Friday’s inflation numbers

… if they come in “hot”, it ain’t just the YEN that’s got a problem, and with price

being up over 600+ PIPS gain in 7 trading days, I’d be surprised if tomorrow

isn’t some kind of consolidation day OR liquidation day for some long position

holders … could be wrong of course, but it makes the most sense right now.

With literally ALL OF THE TRADING ACTION IN THE ASIAN SESSION TODAY,

Europe & U.S. efforts pale in comparison … only one decent algorithm buy

signal in USDJPY … TURNKEY PAMM UP SLIGHTLY … since I turned my screens

on, most of the day has seen the HULL 200EMA sloping lower [hot pink], thus

indicating an intermediate downtrend … given the recent gains, that means buy

signals are likely to be short lived for profits, AND “false positives” will definitely

be higher, meaning pick your long trades carefully and make sure all

components are giving the “green light” … it doesn’t mean long trades can’t or

won’t give a good profitable trade, it simply means it’s a coin flip for that to

happen … sometimes it will and sometimes it won’t, and that’s not good enough

for me to allow me to hang onto the trade … it’s a pure scalp all the way!

Not much to see here today in the YEN market … all the excellent trading action

in the Asian session, and we literally get less than the crumbs … it is what it is

… onto tomorrow.

… outta here … “The future’s so bright I need 2 pairs of sunglasses 😎😎, and

my own Brinks armored truck”!! 💓… Onward & Upward!!