Presenting The BOJ's Failed Stealth Yen Intervention

Tyler Durden's picture

On October 31, we highlighted a rapid and dramatic move higher in the JPY crosses, the day after it closed at the all time high against the dollar, which lasted for a few minutes, and which was later sourced to a technical glitch and not to actual BOJ intervention. Perhaps the fact that the half life of the intervention was  negligible is why no central bank would ever care to admit it was their doing, especially not the pedantic and results-focused BoJ. The story was promptly buried. Yet as Barclays' Masafumi Yamamoto points out, after digging through BoJ current account source data, there is a conspicuous Y0.6 trillion hole that can not be explained otherwise except by attributing the Halloween JPY spike to a stealth BOJ intervention. If that is indeed the case, it highlights something very troubling: namely that not even $5-6 billion dollar intervention purchases stand a chance of pushing the FX needle much in any direction, if at all. Which is to be expected: after all, the other side of the trade is about to see $1,000 billion in dollar selling courtesy of the Fed, which drowns out any BoJ noise. But what is more worrying is that having seen the disastrous impact of its stealth intervention, the BoJ may be dissuaded from intervening in the FX market any more, as it would be loath to lose any more credibility in the FX markets. Nonetheless, as the USDJPY is about to breach all time low supports once again, it should be obvious to confirm or deny if the BOJ has given up in its attempts to diffuse an armed, strapping and dangerous chairman.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Racer's picture

It is disgusting that someone who has the power over the world's currency is behaving in such a reckless and selfish manner with complete disregard for the rest of the world

BeerGoggles's picture

Lol - isn;t that what the US does in all manners of life?

homersimpson's picture

I'm sure the Euros or the Asians would do the exact same thing had they been in the same boat.

DavidC's picture

Erm, haven't the (mainland) Europeans been showing that they AREN'T doing the same thing, despite (by some reports) being suposedly in a worse situation?


Sudden Debt's picture


the not so mighty maximiza's picture

Better to try and fail then never try at all.

Walter_Sobchak's picture

Lao Tzu would disagree.  Taoism Bitchez

Sudden Debt's picture

Isn't that the Obama campaign slogan to?

I also like his other one: "BWhhhaaaa, It's Bush fault I failed!"

unum mountaineer's picture

'move towards more market determined exchange rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies. Advanced economies, including those with reserve currencies, will be vigilant against excess volatility and disorderly movements in exchange rates.'

to summarize: we want a good clean fiight, keep it clean, above the belt, no low blows. protect yourselves at all times. no hits to the back of the head. touch gloves, wait for the bell and come out fightin'....let's get it on!

SheepDog-One's picture

Stir-fry, bitchez.

TheGreatPonzi's picture

Why does an institution like the BoJ, wich has proved his incompetence and has not managed to bring the country out of deflation during 20 years, is still there?

RobotTrader's picture

Today's "Shank and Crank"

Printfaster's picture


This was a move by those trading to press down the dollar do a typical stop ripper.  Grab as many shares by stopping out stupid retailers and then running up the price.

Typically done on a round trip All-or-none trade where the price moves past all the little guys, then the stops click in. Kaboom.


taraxias's picture

Can someone please post what's stopping the BoJ from creating a quadrillion yen out of thin air and buying USD's with it?

How would that be any different than what the FED is doing?


trav7777's picture

nothing stopping them and that's what it will eventually come to.

Brazil is buying dollars and a whole host of nations are sourcing dollar debt now

buzzsaw99's picture

The BoJ will eventually buy $1T usd from the chinese then change currencies. heh heh

RobotTrader's picture

ADM getting flash crashed

buzzsaw99's picture

Riding the ABK squeeze this a.m.? (not advice)

Urban Roman's picture

Waddell and Reed again!?

Into FX and soft commodities now, those basterds!

cheap uggs for sale's picture

We have all cheap uggs for sale in our website ! You can meet all your needs for UGG hot sale here and will certainly be satisfied with the top quality at low price. All UGGs on sale are made with the 100% genuine sheepskin from Australia and are hand-made in our own factory completely. So you need no to worry about the quality and the cheap UGGs for sale are all to be delivered in free shipping. Enjoy the large discount!
UGG Amberlee
|UGG Kensington
|UGG Elsey
|UGG Langley
|UGG Roxy Short
|UGG Roseberry
|UGG Oliviya
|UGG Raya
UGG Brookfield Short

cheap uggs for sale's picture
Many like to prefer this footwear for cheap uggs on sale. its stylish and comfort aspects that charms as well as eases your feet with utmost convenience. Earlier, people use to wear cheap uggs bootsto keep their feet warm in cold weather but now in modern time people prefer them to gain a great appearance.UGGS on sale.Such as:UGG Adirondack|UGG Bailey Button Triplet|UGG Brookfield|UGG Cardy|UGG Delaine|UGG Elsey|UGG Gissella|UGG Highkoo|UGG Kensington|UGG Knightsbridge|UGG Langley|UGG Mayfaire|UGG Roseberry|UGG Roxy|UGG Upside| UGG Amberlee| UGG Oliviya| UGG Gaviota|UGG Desoto|UGG Bailey Button |UGG Brookfield short|UGG Swell .
cheap uggs for sale's picture

Welcome to our website-- , we are making the promotion for many uggs now.Here is a chance for you that you want to buy good ugg classic boots by cheap price.At present our hot sale snow boots has :
| UGG Delaine Boots
| UGG Gaviota Boots
| UGG Gissella Boots
| UGG Evera Shoes
| UGG Upside Boots

shaoye's picture

Find ugg and Australian sheepskinAuthentic Ugg boots, learn the history behind the Cheap ugg boots, and when and what to wear with Ugg boot, as well as cleaning and caring for ....we sell new style Ugg boots on sale,You can find the wholesale discount Ugg boots here.