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Yen Surges: BOJ Intervention Watch At DefCon 1

Tyler Durden's picture


Starting at 9pm Eastern, something lit up a fire under the Japanese Yen, sending all pairs, but specifically the USDJPY and EURJPY down sharply for no apparent reason. At last check the Dollar Yen was back under 79.85, the level at which the BOJ 3 months ago had to run like a petulant, crying child to its pedophile uncles from the G-7, begging for a rescue.  The only mildly related news came out just prior when it was announced that China's net purchases of Japan debt hit a new record in April. From Bloomberg: "China’s net purchases of Japan’s long-term debt reached a record as the larger nation seeks to diversify the world’s biggest currency reserves. China bought a net 1.33 trillion yen ($16.6 billion) in Japanese long-term bonds in April, the biggest amount since records began in January 2005, according to data released today in Tokyo by Japan’s Ministry of Finance. The nation sold a net 1.47 trillion yen of short-term debt, the data shows. “As China tries to diversify its assets with its huge foreign-exchange reserves, it probably wants to have yen- denominated assets to some extent” in the longer term, said Tetsuya Inoue, chief researcher for financial markets for Tokyo- based Nomura Research Institute Ltd. “China has a strong trading relationship with Japan." If anything this would be dollar negative, not so much Yen positive... We will follow and update if anything is noted.


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Tue, 06/07/2011 - 21:16 | 1349244 Canaduh
Canaduh's picture

A priest, a rabbi and three melted down nuclear reactors walk into a bar....

Tue, 06/07/2011 - 21:33 | 1349284 Cognitive Dissonance
Cognitive Dissonance's picture

With or without all their fuel rods. makes a difference.

Tue, 06/07/2011 - 22:10 | 1349421 Enceladus
Enceladus's picture

Yep their rods were exposed

Wed, 06/08/2011 - 00:23 | 1349670 Urban Roman
Urban Roman's picture

To underage girls?

Wed, 06/08/2011 - 01:08 | 1349725 Breaker
Breaker's picture

Only on twitter.

Wed, 06/08/2011 - 01:34 | 1349746 Fish Gone Bad
Fish Gone Bad's picture

A priest, a rabbi and three melted down nuclear reactors walk into a bar....

"Ouch!", they exclaimed.  Then they all had ice cream.

The end.

Tue, 06/07/2011 - 21:45 | 1349325 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

I want to hear the punchline...Anyone?

Tue, 06/07/2011 - 21:50 | 1349354 blunderdog
blunderdog's picture

Priest orders some blood of Christ.  Rabbi orders some Manichewitz. 

The reactors say, "It's coming on three fucking months drinkin' with these two assholes, if I'm not quenched soon, no one gets out alive!"

Tue, 06/07/2011 - 22:19 | 1349431 Orly
Orly's picture


Excellent job!


Wed, 06/08/2011 - 14:52 | 1351854 gmrpeabody
gmrpeabody's picture

So the bartender says..."I hopes all of you left your rods at the door".

Tue, 06/07/2011 - 22:04 | 1349394 Cheesy Bastard
Cheesy Bastard's picture

...The bartender looks up and says "what is this, some kind of joke?'

Tue, 06/07/2011 - 22:29 | 1349458 LowProfile
LowProfile's picture

The reactor says "Joke?  That's on you, motherfucker." and promptly spews cesium on him.

Wed, 06/08/2011 - 02:39 | 1349792 Roaming Uranus ...
Roaming Uranus Looking For Klingons's picture


Tue, 06/07/2011 - 21:46 | 1349336 gwar5
gwar5's picture

...walk into a bar...

The bartender asks the priest, "Well, what'll it be?"

Priest: "Gallon of Irish Whiskey and a glass."

Rabbi: "A whole keg of Manaschevitz red wine and a Kosher pickle."

Three Nuclear Reactors: "3 million gallons of your coldest water, 3 firehoses, and your utmost discretion."







Wed, 06/08/2011 - 01:31 | 1349747 phungus_mungus
phungus_mungus's picture

Shouldn't that be an earthquake, a tsunami and three melted down nuclear reactors walk into a bar....

Wed, 06/08/2011 - 01:32 | 1349748 Fish Gone Bad
Fish Gone Bad's picture


Tue, 06/07/2011 - 21:20 | 1349245 Yen Cross
Yen Cross's picture

I'm all over that one BOB!

Tue, 06/07/2011 - 21:17 | 1349246 Turd Ferguson
Turd Ferguson's picture

Wow, I thought only PMs had charts that looked like that.

Tue, 06/07/2011 - 21:32 | 1349283 sabra1
sabra1's picture

thought that was weiner's vid snapshot!

Tue, 06/07/2011 - 21:59 | 1349388 serotonindumptruck
serotonindumptruck's picture

In a parabolic inverse curve?

Tue, 06/07/2011 - 23:13 | 1349564 Yen Cross
Yen Cross's picture

 I'm watching a parabolic h-1 SAR. Mixing it with the oversold moving average.

Tue, 06/07/2011 - 21:42 | 1349311 Cheesy Bastard
Cheesy Bastard's picture

Wow, I thought only women with PMS had charts that looked like that.

Tue, 06/07/2011 - 22:40 | 1349500 New Survivalist
New Survivalist's picture

Who the fuck junks you, Turd?


Must have some crybaby stalkers that got spanked on your blog.

Wed, 06/08/2011 - 02:38 | 1349794 Roaming Uranus ...
Roaming Uranus Looking For Klingons's picture

New Survivalist = New Baffoon.  Now have a nice week you idiot.

Wed, 06/08/2011 - 04:19 | 1349875 Vlad Tepid
Vlad Tepid's picture

Since you KEEP using the word to insult people, I must point out that the word you're trying to use is "buffoon." As in "Roaming Uranus is a seemingly illiterate, pontificating buffoon."  Is it easier to understand when I use it in a sentence?

Wed, 06/08/2011 - 15:08 | 1351934 gmrpeabody
gmrpeabody's picture

Well played, sir!

Tue, 06/07/2011 - 21:18 | 1349249 progro
progro's picture

DOW futures dropped too...

Tue, 06/07/2011 - 22:06 | 1349304 TruthInSunshine
TruthInSunshine's picture

This isn't supposed to happen. Clearly, there's a serious glitch in the Matrix.

Algorithm was supposed to be USD lower = Equity indexes higher = American Living Standards into the sewer* ad infinitum.

Two out of the three is going to cause absolute chaos. All three need to click precisely, lest it all comes unwound at the seams. It's akin to a slightly 'off' centrifuge (loaded with highly enriched plutonium).

Kyle Bass is beaming confidently in speaking of the literal end of Japan as it's been known for at least 60 years, as in total economic implosion.

Wed, 06/08/2011 - 00:20 | 1349661 Yen Cross
Yen Cross's picture

 to, and cash forwards are flat!

Tue, 06/07/2011 - 21:18 | 1349250 camoes
camoes's picture

Don't worry BOJ will flood with liquidity, free money bitchez!

Tue, 06/07/2011 - 21:26 | 1349268 gwar5
gwar5's picture

Like da free munny!

Tue, 06/07/2011 - 21:22 | 1349252 progro
progro's picture

Dow futures dropped too...

Tue, 06/07/2011 - 21:20 | 1349253 Yen Cross
Yen Cross's picture

 Intervention? Ohh an exporters nightmare! The option @ 79.4 needs to get touched! (FIRST)

Tue, 06/07/2011 - 21:28 | 1349273 Yen Cross
Yen Cross's picture

worthless person that keeps junking me! Show your face. Loser!

Tue, 06/07/2011 - 21:55 | 1349363 blunderdog
blunderdog's picture

Only pussies cry about being junked.

Tue, 06/07/2011 - 22:00 | 1349390 buzzsaw99
buzzsaw99's picture

you don't know how right you are. Consider yourself junked as well.

Tue, 06/07/2011 - 23:18 | 1349573 Yen Cross
Yen Cross's picture

 So blunder, what is your trade? Ya gonna pump and dump the usd in Europe, or Asia?

Wed, 06/08/2011 - 00:26 | 1349675 blunderdog
blunderdog's picture

I nibble at tiny bits, not enough working capital to play with 4x just yet.  Tomorrow I'll probably buy some SDS and dump it at the end of the day.

I'm not much of a trader, so if you're trying to compare dick size, you've got the wrong guy.  I actually have to work for a living.  That doesn't change the fact that I think you're a clown, and a pussy for crying about being junked.  It's 20 bullshit posts from you for each one that has anything to do with the topic or expresses a coherent thought.

Wed, 06/08/2011 - 02:49 | 1349802 Roaming Uranus ...
Roaming Uranus Looking For Klingons's picture

Yen -- I told you to stop being a blowhard. 

Every single time somebody slams your lil dick in the dirt, you start screaming about what is your trade, what is your trade. 

How about you have no trades, because if you did you wouldnt be searching the advice of a bunch of baffoons.  That is why i said that Yen Crosser = Bafoon.  Stop pandering to fools, which makes you a fool. 

A good lesson for you -- now sit down, zip it up, listen and learn, and you can give me thanks at your leisure. 

Have a good week..........

Wed, 06/08/2011 - 00:25 | 1349672 Yen Cross
Yen Cross's picture

 Coming from a PUSSY?! You are pathetic.  YEN CROSS.


    I never Junked you!

Wed, 06/08/2011 - 00:27 | 1349676 blunderdog
blunderdog's picture

Thank you so much for your thoughtful and considered response.

Tue, 06/07/2011 - 21:59 | 1349385 buzzsaw99
buzzsaw99's picture

i junked you too. Rule #1) We do not talk about people touching our junk on here. ;)

Wed, 06/08/2011 - 04:50 | 1349901 cossack55
cossack55's picture

SAY WHAT?  The Bernank has been touching everyones junk for years.  Oh, unless you mean junk in a Weiner-kind-of-way.

Wed, 06/08/2011 - 00:14 | 1349659 Yen Cross
Yen Cross's picture

  usd/jpy is compressing. look@ rsi and stochastics.

Tue, 06/07/2011 - 23:40 | 1349605 fswalker
fswalker's picture

Option / long retail positions will need to be wiped before Yen will loose its strength and reverse. Cheers for the heads up on the option barrier.

Tue, 06/07/2011 - 21:19 | 1349254 buzzsaw99
buzzsaw99's picture

the bernank is pleased.

Tue, 06/07/2011 - 21:22 | 1349256 pragmatic hobo
pragmatic hobo's picture

tomorrow could be ugly ...

Tue, 06/07/2011 - 21:20 | 1349260 camoes
camoes's picture

Something is going on with copper as well, maybe Blythe is switching to Dr.C to raid?

Tue, 06/07/2011 - 22:11 | 1349410 Dapper Dan
Dapper Dan's picture

ISTANBUL—China is likely to pick up its copper purchases in the second quarter, at a time when global supplies of the metal are forecast to be in a deficit of 500,000-600,000 metric tons.

The combination is likely to result in even high copper prices, executives at an international metals conference said Thursday. Copper prices recently hit all-time highs, reaching above $10,000 a metric ton in London and topping $4.60 a pound in New York.

Me thinks they are going to coin it, they purchased  much more in 2009.

Tue, 06/07/2011 - 21:21 | 1349262 Id fight Gandhi
Id fight Gandhi's picture

Must print more yen. Stop Godzilla

Tue, 06/07/2011 - 21:25 | 1349265 oogs66
oogs66's picture

Just like the intervention in silver, where the only tool was margin hikes, the governments can only shift assets away from their actual value for a period of time and then they revert. 

Tue, 06/07/2011 - 21:25 | 1349267 Superslam
Superslam's picture

Looks like a flush to me. Yentervention in 3...2...1.....

Tue, 06/07/2011 - 21:42 | 1349275 TruthInSunshine
TruthInSunshine's picture

Major shit about to hit the fan. Night night. Lights out.

Looks like The Bernank is being set up here by his masters as some sort of offering to Moloch. A sacrificial lamb of sorts.

Never gamble with the devil on his terms unless you enjoy white hot poker in the rear.

Tue, 06/07/2011 - 21:49 | 1349349 Dapper Dan
Dapper Dan's picture

Thanks Truth for the link,  Great quote from Koo,

"Essentially all that happened is that by buying up Treasuries, investors were forced to look for returns elsewhere, in places like stocks and commodities. The latter, the commodity gains, ended up slowing down the economy. What's more, QE2 has had no positive impact on bank lending whatsoever."

The question is when did the economy slow?  Officially.

What are Koo's thoughts on QE3?

I am sure Krugman's bathroom is spotless, but Koo could put some Kung fu

on his Princeton ass.


Tue, 06/07/2011 - 22:51 | 1349508 Bay of Pigs
Bay of Pigs's picture

Dimon directing questions to Bernanke today was almost surreal.

I kept wondering, what the fuck is he doing? And why?

This is cover for exactly what?


Tue, 06/07/2011 - 23:05 | 1349541 Bay of Pigs
Bay of Pigs's picture

And BTW, Jamie Dimon is nothing but a lying sack of shit. His firm is more responsible for the tragedy unfolding in this country than any other bank, hands down.


Tue, 06/07/2011 - 23:09 | 1349554 Orly
Orly's picture

It's the good old "good cop, bad cop" routine.  The evil banksters are dyed-in-the-wool, straight-up evil sumbitches, don'tcha know?  How dare Unca Ben impose regulations on bankers that they must to abide by!

Man, it's sure a good thing Unca Ben is there, protecting us little people, don'tcha know?  He is only trying to protect us.  So, I don't really understand this whole "QE III" thing.  Unca Ben won't let those evil banksters harm us ever again!

Theatre.  Simple theatre.

Wed, 06/08/2011 - 00:17 | 1349664 TruthInSunshine
TruthInSunshine's picture


I could say that this is what I meant, but given how poorly I tried to communicate my still budding thoughts, I won't.


Excellent analysis.

Wed, 06/08/2011 - 08:42 | 1350210 Orly
Orly's picture

Thanks.  :D

Notice I did it in my best Sarah Palin, so that I could show everyone how really dumb we are.

Palingensia, bitches!

Tue, 06/07/2011 - 21:31 | 1349281 PaperBear
PaperBear's picture

And the game goes on and on and on.

Tue, 06/07/2011 - 21:30 | 1349286 Yen Cross
Yen Cross's picture

 To all the smart respectful traders . Thank you for your thoughts! You wanna be punks are toast!    YEN

Tue, 06/07/2011 - 21:38 | 1349289 bob_dabolina
Tue, 06/07/2011 - 21:36 | 1349303 Zaphod B.
Zaphod B.'s picture

Whoah...I looked at chart sideways...looks like the Man in the Mountain...

New Hampshire...near????

Two points for you if you guessed Bretton Woods.


Tue, 06/07/2011 - 21:42 | 1349310 donpaulo
donpaulo's picture

I wonder when Japan will institute a negative borrowing policy.


Remember also that in the last 6 years Japan has had 4 Prime Ministers and that the current PM was the finance minister before getting his promotion.


The blackswan in the deck was the earthquake tsunami that seems to have taken a back seat to Fukushima. The entire Tohoku region needs major infrastructure investment.


whatever they decide to do, count on it taking a long time because the LDP is blocking most legislation

Tue, 06/07/2011 - 21:40 | 1349313 chump666
chump666's picture

crosses are being slaughtered...nice, I see Japan fiscal collapse finally taking out China's property market.

Cause the Chinese are the worst investors in history, the USD will be super bid in the next three mths.

Tue, 06/07/2011 - 21:46 | 1349316 Irrational Exub...
Irrational Exuberance's picture

This is all in the plan, and was coordinated with the BOJ. The USD is rising, and the stock futures are falling. Exactally what needs to continue to convince the lemmings that QE3 is needed!

Wed, 06/08/2011 - 01:17 | 1349730 Breaker
Breaker's picture

"This is all in the plan, and was coordinated with the BOJ. The USD is rising, and the stock futures are falling. Exactally what needs to continue to convince the lemmings that QE3 is needed!"

Not sure a plan is needed. What you just described is the direction things would go sans gigantic levels of government interference, money printing, deficits etc. If the feds stop blowing the bubble, it will collapse. Maybe that brings about QE3, I don't know. At some point, the folks in charge of things have to figure out that it hasn't worked and another one won't work any better. I think the only goal of the government class right now is to keep things afloat thru the 2012 elections.

Tue, 06/07/2011 - 21:48 | 1349348 AUD
AUD's picture

China's net purchases of Japan debt hit a new record in April.

Mildly related? Come on ZH, you're smarter than that. There is a strong bid under Japanese bonds, thus the Yen is appreciating.


Tue, 06/07/2011 - 22:13 | 1349428 Yen Cross
Yen Cross's picture

 Thanks for the reminder AUD. I priced in the RBA news already. That could be a sell the fact, down the road.     Yen

Tue, 06/07/2011 - 22:23 | 1349449 chump666
chump666's picture

its china rumors, re: liquidity/bailouts freaking markets thus the aud and others. 

Tue, 06/07/2011 - 23:23 | 1349576 Yen Cross
Yen Cross's picture

 don't forget reserve requirement changes.

Tue, 06/07/2011 - 22:08 | 1349402 Kevin... Who su...
Kevin... Who suffers from Cassandras curse's picture

I do not understand. i am drunk and it is hard for me to ypte.

please, someone expaine.

Tue, 06/07/2011 - 22:11 | 1349411 buzzsaw99
buzzsaw99's picture

No, there is too much. Let me sum up. Buttercup is marrying Humperdinck in a little less than half an hour. So all we have to do is get in, break up the wedding, steal the princess, make our escape... after I kill Count Rugen.

Tue, 06/07/2011 - 22:24 | 1349446 Orly
Orly's picture

My name is Iniego Montoya...

Tue, 06/07/2011 - 22:24 | 1349455 buzzsaw99
buzzsaw99's picture

Humperdinck! Humperdinck! Humperdinck!

Tue, 06/07/2011 - 22:35 | 1349483 qussl3
qussl3's picture

Looks more like humpachink right now tho.


Tue, 06/07/2011 - 22:33 | 1349488 Orly
Orly's picture

The visual's coming in  now, Captain...

Tue, 06/07/2011 - 23:22 | 1349578 Yen Cross
Yen Cross's picture

 I'm giving her all she's got ORLY!  The warp coil is off line!

Tue, 06/07/2011 - 22:39 | 1349497 monopoly
monopoly's picture

DefCon 1. I know it well. Tyler you are beyond amazing.

Well done Sir.

Tue, 06/07/2011 - 22:47 | 1349510 RobotTrader
RobotTrader's picture

As usual....

First sign of chaos in the currency markets, the Algos are trained to:

- Sell gold

- Sell silver

- Sell crude oil

- Buy U.S. Treasuries

- Clamor for U.S. Dollars

Tue, 06/07/2011 - 22:46 | 1349514 Orly
Orly's picture

Frankly, I don't see what everyone's on about.  The 4X market in my neck of the woods hasn't moved in 28 hours.

Jus' sayin'.

Tue, 06/07/2011 - 23:08 | 1349560 Bay of Pigs
Bay of Pigs's picture

Gold hit an all time high today (London AM fix).

Smart money will buy on weakness. 

As usual you have it backwards.

Wed, 06/08/2011 - 01:09 | 1349724 geminiRX
geminiRX's picture

They are trying to paint a double top in gold. High degree of caution warranted in the short term

Tue, 06/07/2011 - 23:34 | 1349598 chump666
chump666's picture

it was all china news, some OPEC oil output increases (China again), some world bank dude saying China won't slow down that 'hard'. kinda stabilized eveything. if commods are weak in to UK/EZ open.  should see some juicy sells.  bernanke allowing the market to correct now and USD bid.  thats pretty much it...till something bad happens.

Wed, 06/08/2011 - 00:13 | 1349650 Soul Train
Soul Train's picture

Chinese monetary decision makers are increasingly crafty, and this trend will continue.

It's mid and long term implications on the dollar are significant.

The good ole' days are indeed over.

Wed, 06/08/2011 - 00:18 | 1349667 chump666
chump666's picture

cant remeber when the HFt's wakeup, i think now GMT?  I dunno, the next 2hrs if you are alive

Wed, 06/08/2011 - 01:28 | 1349740 Temporalist
Temporalist's picture
FOREX-Dollar on defensive after Bernanke, falls below 80 yen

Dlr hits one-month low of Y79.75 as Asia stocks fall


Wed, 06/08/2011 - 02:41 | 1349790 chump666
chump666's picture

and we got CDS (EZ) starting to widening on morning open.  All Greece.

*German trade data poor. Trade Bal

You might as well write off the Greece bailout's toast IMO

Wed, 06/08/2011 - 03:20 | 1349819 Nage42
Nage42's picture

Well, if the Yen is uberstrong and "the great K[h]an" needs to shell out some dosh for rebuilding then this sounds good for Japan...

They should game it.

Initiate a massive "risk-off" event, by telling the world they are going to institute total market protectionism and Yen reclamation in the way of Treasury selloff to buy Yen for rebuilding funding (unwind all Yen-funded carry trades from borrowed money) and while the Yen-strengthening repatriation spikes and people unwind all their Commodities pump (risk-off), settle a BaJillion in immediate and future deliveries of Copper/Iron, Oil/Gas, and Cement.  Declare to he world that you "spent your load" and that you'll fail to meet JGB obligations (don't worry, it's mostly Japanese that hold JGBs and just tell them in Japanese that: "Shoganai" = nothing we could do...).

Keep rebuilding for 5 years while you foster universities to switch to bio-sciences (does not require raw resources and cheap labour like manufacturing did, but rather no resources and high-skilled labour in high-security, local facilities).

Problem solved?


Wed, 06/08/2011 - 03:21 | 1349820 mt paul
mt paul's picture

dollar negative...


ya think..

Wed, 06/08/2011 - 08:22 | 1350159 johngaltfla
johngaltfla's picture

There's a liquidity crisis developing our small regional banks and some of the banksters in Europe. I'm just sayin'.....

Wed, 06/08/2011 - 09:23 | 1350391 luciusfargo
luciusfargo's picture

Nailed it.

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