Yen Flash Smash Part Two

Tyler Durden's picture

Just like right after Fukushima the USDJPY waited for the illiquid 5pm session to collapse, here comes part two. Have the FX HFT algos now completely taken over? A 100 pip move is catastrophic for most levered FX desks. It is time someone figured out what is casuing these periodic plunges. Sure enough, someone will gobble this up and hopefully make some money, unless there is actual news that just sent the Yen to near all time record highs.

And another perspective:

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HitTheFan's picture

This is bullish though right?

TruthInSunshine's picture

This means Fukushima Daiichi has been successfully fixed with some Quikrete and some chicken wire.

Also, the Japanese National Debt was slashed from 214% of GDP to 213.999999999997% of GDP, pending revisions.

They are free to print another quadrillion yen now.


redpill's picture

Could be a result of revelations that Japanese across the entire country have been eating radioactive beef for months:


Or maybe that radioactive ash is being collected in Tokyo:


Or maybe that the Fukushima "Contaminated Water Filtration System" is on the brink of catastrophic failure which will eventually result in the poisoning of the ocean along the entire Japanese coastline.


OR it could be the revelation that the technology does not exist today to remove the melted fuel from the bottom of these reactors, and that long term entombment and continued poisoning of Japan is inevitable.


Fukushima Sam's picture

We're even getting a little of the action in peaches!

10:05 pm 10-minute INTERIOR average: 39.9 CPM
9:50 pm 10-minute EXTERIOR average: 45.6 CPM NORMAL
4:00 pm INTERIOR spot reading in Santa Monica market with approximate background of 39 CPM – Two peaches sustained 81 CPM and above or over two times background (208% of site background).
3:40 pm 10-minute INTERIOR average: 39.6 CPM
3:25 pm 10-minute EXTERIOR average: 47.0 CPM

SwingForce's picture

Down here in South Florida, at the Condo-minium we use Bubble Gum & Duct Tape, only thing holding this place together! Y'all oughta try it some time, ya' hea?

Charles Wilson's picture

I always knew that there had to have been a nuclear accident somewhere in South Florida sometime ago, probably when Schnellenberger took over the Miami Hurricanes Football team.

The above post proves it.



Jack Napier's picture

HAH!! People who live in vitrified houses shouldn't throw rocks, Jeb!

Charles Wilson's picture

Thanx, Jack -

Speaking of Jeb!, we're already getting a preview of the mud slinging to come. When Nancy "Her-eyes-seem-to-follow-you-everywhere" Pelosi was stunned the other day when Obama stated he would accept SocSec cuts ("But..That's our Strategy for the Election..."), I was reminded of (Put your right hand on your heart, get misty eyed and look to Heaven) Lawton Chiles and his race against Jeb! for the Senate a few years back.

A few days before the election, Saint Lawton hired a phone bank to call all the SocSec Seniors and tell them, "Thay's gon slyce yer Soshul Secur'ty!!!"  The tactic (by concensus) worked. After the election, Saint Lawton apologized - sorta' - and did another term in the Senate. Just a little ofal soiled Saint Lawton's pant leg.

Meanwhile, George W., the younger, was running against Anne Richards (I believe) and was supposed to lose. So: Jeb! was supposed to win and springboard to the Presidency and lost, GW won and became the President.

Mission Accomplished!




PS: This election that's coming may be one of the lowest, smarmiest mud slinging elections in history.  There are pigs alive today who would not lie in the filth that's coming.


Tidewater's picture

Yeah, I wonder who let the new guy near the keyboard.

Long-John-Silver's picture

This is great for Japanese exports as long as no one checks the products for radiation.

ihedgemyhedges's picture

Just like your avatar............

fuu's picture

gravity is a harsh mistress

SWRichmond's picture

Dude, you said a mouthful...oh, wait...

camoes's picture

Efficient markets, bitchez

Caviar Emptor's picture

Flash Crash! What a feeling......

The Count's picture

HFT is the crystal meth of the markets. Won't stop until the consumer bites the bullet. Don't expect our 'regulators' to end the shenanigans, they are on the take.


steveo's picture

Check GBP also


This is what I call the "False Flag Break".   A deceptive move of the markets, scaring the longs out of their position before continuing upward.   The PTB HBB crew does everything they can to rack the retail over the coals.   And they collude through direct phone conversation, pit talk, and complicity of quant programs.   Fair? No.  Legal, No?    The way it is?  Yes.


I remain long GBP

Remember this is expiry week, more fireworks tomorrow and usually a slow down of volatility into Thurs Fri


FranSix's picture

When the ¥ flash crashes, ppl listen.

Cojones's picture

Take Profit hunting. 

fxpert's picture

I had a small position before this crash and now gobbled up some more. 

mynhair's picture

Carry trade moving again?

oldmanagain's picture

Not too big on conspiracy theories unless it was Bush/Cheney.  But why aren't we doing more to confront the lack of regulation that occurred under them and Clinton.  So far we are batting about .165.

Jack Napier's picture

If you want to talk about lack of regulation ask Ted Butler. Political parties may change, but policies do not. If you see someone on TV you can be certain they don't make any decisions. It defeats the purpose of being in control if you are on the hook with the public.

DollarDive's picture

It takes a bald headed bankster to get a dirty job done !

Ned Zeppelin's picture

Yeah where is that traitorous leech Hank Paulson when you need him? 

a_ext's picture

Where's the duct tape?


Long-John-Silver's picture

It's sitting on the shelf with the bailing wire.

TruthInSunshine's picture

And next to that 860 million dollar batch of H1N1 'Avian Flu' Immunizations, that don't work, bought from Gilead Science (Rumsfeld used to be their CEO...huh).

knukles's picture

And them scanner thingymebobs in the airports that Chertnoff sold.

knukles's picture

And finding that $3.2 trillion gone "missing" at the Pentagon?  (Lotta corners that coulda disappeared into.)

TruthInSunshine's picture

What's a trillion or so difference between criminal friends.

Silverstein had...what...8 separate policies of insurance on WTC 1 and 2?

And whatever did happen to the somewhat important CIA, DoD, IRS and other government records 'lost' on that day?

I know...I know...crazy talk.

mynhair's picture

Why?  Are you on a plane?

augie's picture

I'm sorry,

was that a conkers bad fur day reference? because if it was, that is the most obscure reference i have ever come across. If i am mistaken, i apologize for my insanity.

Sutton's picture

Something wrong, something not quite right.

mick_richfield's picture

You don't know what it is, but it's there -- like a splinter in your mind.

knukles's picture

What's the topic?  I forget.

Jack Napier's picture

Hacking, techno, white rabbits, red pills, batteries, Skynet.

knukles's picture

Oh wow.

Like, uh       I was   uh    getting lost   there.
Thanks.... .  . .    . .   .  . .. .   .  .      . .  .     .

DollarDive's picture

Banksters need to give sheeple the illusion that markets are really not coming unglued.  They need to show that AUD, NZD - risk based currencies are not crashing.  By killing the USD, it seems that AUD/USD and NZD/USD are moving higher.  We just lose more purchasing power here in the good ole USA.

alexanderstollznow's picture

US$ index is at its highest level since April, and AUD is dead middle of the range for the last 4 months.  what is more, you need to have less purchasing power in the USA - the trade deficit blew out 15% last month, and the economy is rooted.  so a weaker currency is required to foster exports, curb imports, and encourage foreigners with cash to buy your assets.  that is why we have floating currencies, remember? 

alexanderstollznow's picture

god, here we go again...

this is exactly the same circumstances as the 'last' such move:  it has occurred a few minutes after interbank close in NY.  ie when there is minimum liquidity in the fx market.  it doesnt mean anything, and it isnt a problem for anyone unless of course they sell out a long position at the low.  as it was only down there for a few minutes, i daresay that did not happen, and JPY is almost back where it started.  talk it up!

swissinv's picture

FX markets are hard to manipulate, how the fuck they always bring it down?