Charting Japan's Latest Failed Currency Intervention Attempt

Tyler Durden's picture

Bloomberg's Mike McDonough has put together the simplest, and thus best, chart of the latest epic collapse in the BOJ's attempt to intervene and keep the Yen from appreciating. The chart needs no explanation, and shows that the half life of BOJ interventions is not only exponentially shorter but now, outright laughable. What does need an explanation, however, is the prevailing quandary of just what sleeping medications Noda and Shirakawa will have to take once USDJPY touches on 75, then 70, then 65, then 60 and so on, and they watch, watch, watch, the "one-sided" moves in the USDJPY, helpless to do absolutely anything as the Chairman drop kicks yet another monetary opponent into a permanent knock out.

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trade the day's picture

"Hi my name is JPY and the reason for my intervention is because the US is addicted to debt". 

trav7777's picture

the japs can't intervene faster than we can lol

Taku's picture

No one can out-print the Bernank.

No one.

You can Bernank on that.

myne's picture

It's not really a fair match either.

The US dollar is monochormatic. The Yen is not.

No one's built a colour printer that is as fast as monochrome.

falak pema's picture

monochrome AND reserve currency....

MonsterBox's picture

color or monochrome.... printers are weapons of mass distruction (WMD).  so where is the righteous & preemptive invasion of the FED?

zorba THE GREEK's picture

Worthless Jap and Euro money keeps gaining against the dollar should tell

you that maybe the dollar is soon to be worthless too.

JohnG's picture

Money for nothing....

NoClueSneaker's picture

MK wrote another nice one:

Why Aye Man

Seasmoke's picture

the red line looks pretty limp

UGrev's picture

I was wondering what that vaccuous sound was.. 

Jasper M's picture

". . . as the Chairman drop kicks yet another monetary opponent into a permanent knock out"

Luche non Libre!

Paging Banzai7! We have your next composition!

chump666's picture

hahaha...oh man they are hopeless.

NumNutt's picture

Better pay attention to what is going on in japan, since the US federal government has gone ahead and decided to use the same play book. 

RockyRacoon's picture

Oooooh!  Rick Perry ain't gonna like that maneuver.

chump666's picture

it is going to be hilarious when those maniacs at the SNB try to peg the EUR, the YEN will go parabolic...maybe, just maybe Japan goes to economic war and sells off a ton of toxic Spanish/Ireland/PIIGS sh*t.

chaos trade coming.

gwar5's picture

Ironic that we can print faster than they can since our printers are probably Japanese.

NoClueSneaker's picture

Ze Heidelberger Japanese ?

cossack55's picture

Actually I believe they are German. You know, the same ones the Shah bought in 78' and hid in the Iranian hills.

silver is money's picture

I have same feeling that USDYEN will fall to below 70 but that is only if I look at USD fundamentals.


 IS JAPAN any better?

1. -Most Aged developed country in the world 

2. -Most indebted country - over 200 percent of GDP

3. -Many young singles falling below the poverty level

4. -Radiation is spread-ed all over Japan

5. -No natural/energy resource in Japan

6. -No future tax income and proper work forces due to 3 (Many young singles falling below the poverty level)

Chappaquiddick's picture

Agree with all of this which is why I don't do FX - PMs and bonds only.

Smiddywesson's picture

Stop yer whining and eat yer edamame!!!!!! (peas)

As if they don't have enough trouble, now the Bernank is crashing the doller into the yen like a bankster kamaikaze

Where is Banzai when we need him most?

choorles's picture

this is just tooo good... those banksters are setting silver to go to the moon

PaperBear's picture

I sure as hell wouldn’t want to put any of my money in the currency market, I am waiting for the next round of QE to be announced by Ben Bernanke at the Jackson Hole conference August 26th. I will be one of those evil speculators who will be going long on both a stock market index and crude oil with a bit of my money (the rest will be in call CWs on silver) and be sure to exit a month or so before the QE is set to end.

PulauHantu29's picture

I'm waiting until the Fed weakens the dollar so:

10 Yen = 1 USD

What happens then? Will that encourage Japanese to buy our exports? BTW, what do we export?

Smiddywesson's picture

By the time this is over, we will export mail order brides.

But the good news is we get to keep the ugly gals.

MarkS's picture

Actually, a lot of this is China, both government and individual money.

Wealthy individuals want to get there money out of China so they are buying assets in a very stable country only a short plane ride.  To do so they have to buy Yen.

The Chinese government sees Japan as an export competitor and the more expensive the Yen the cheaper Chinese products appear vs the competition.  China is also trying to move from exporting consumer goods to exporting heavy infrastructure like high speed trains.  Their high speed trains are basically a reverse engineered copy of the Japanese but without nearly the quality control.  Hence you have a disaster in a derailment in China (with little publication after a Chinese ban on reporting that wasn't governement authorized) affecting their chances of building the high speed rail in South America.  The Japanese gained a lot of traction from that disaster so the Chinese are doing the one thing that might make a difference when your quality sucks - they're driving up the cost of a Japanese offering.  I'm not saying that is the only reason for the surge, just pointing out the benfits of one of the many strings the Chinese play in manipuliatng currencies.

The question is whether they realize the Euro sovereign and banking issue could bankrupt them if they contnue to be the financier of last resort...the ECB buying you see is China sponsored...


Quadlet's picture

Try looking at his analysis of trash.

When economists get this desperate, you know it is bad...