Yen Central Bank Action

Today the Bank of Japan took action to push the Yen down. They don’t like the way the strong yen has reduced their economic competitiveness. It is reported to be action by them alone (not coordinated with other central banks) but it has clearly had an impact.

Bank Of Japan Intervention in the Yen

Bank Of Japan Intervention in the Yen

Notice that the last day is a whole lot lower than the others… (Click on the graph for a larger more readable version)

That’s what a central bank intervention looks like.

So at this point, I’d step out of the Yen. The central banks are taking action with it, so you don’t know what will happen day to day. Metals or Swiss Francs for now for any ‘avoid the dollar’ trade (though currencies like the Aussie FXA are also doing well)

Swiss Franc vs Gold, Silver, Palladium

Swiss Franc vs Gold, Silver, Palladium

Yes, you could use Euros or British Pounds. But those folks have not been all that good at maintaining currency values either…

About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
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1 Response to Yen Central Bank Action

  1. ScottH says:

    The Swiss are playing around as well, the US has been doing it for years through various means, and the Chinese have been doing if for over a decade now, seems no one is playing straight or together.

    Unless ya got very large brass ones and some funds to burn, probably wisest to bow out of FX trading for a while. Things are likely to get really really dicey.

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