Yentervention Part 2011: Dollar Yen Surges After Ministry Of Finance Sells Just Under Y500 Billion

Tyler Durden's picture

First the SNB earlier today, now the BOJ? Out of nowhere the USDJPY just surged by 100 pips. It appears that the next round of central bank warfare is upon us.

And from Bloomberg:

  • Japan Intervened in Yen, Nikkei Says
  • Japan Intervened to Sell Yen, Finance Minister Noda Says
  • Yen Falls as Much as 1.8% to 78.43 Per Dollar After Intervention
  • Japan’s Intervention Was Unilateral, Finance Minister Noda Says
  • MOF sold under Y500 billion in intervention: 2 dealers
  • Noda Says He Hopes Bank of Japan Will Take Appropriate Actions

There, it wasn't that painful now was it. Now just prepare to do it over, and over, and over, because as the SNB showed earlier, the last recourse of central banking around the world now has a 6 hour halflife.

And since this a short 11 month period from the last time the BOJ intervened and failed, here is to old memories and failed central bank interventions.

From Currency Intervention, Bitches, September 14, 2010

After a six year wait, the BoJ has finally had enough of the Federal Reserve's endless manipulation and has itself intervened in the currency market. The USDJPY jumps over 150 bps, the Nikkei surges 250 pts (that ES-Nikkei convergence or whatever the hell it was is closing soon) as the BOJ sells between 200 and 300 billion worth of yen. Yes, this is the time to short, short, short because if the now useless SNB interventions have taught is anything it is that central banks are populated by pompous morons who believe they can control the world, when the best thing they can do is hope for the last Viagra shot to result in priapism. For those who have taken Psych 101 - look up learned helplessnes. Next up - the SNB, and after that the Fed once again, and after that, the slow but sure end of fiat. The race to the currency devaluation bottom is now in the third and last lap. And incidentally, for all those who missed it, the BOJ's intervention is a symbolic capitulation,  and the beginning of the end for the Keynesian system. Rejoice.

 

And Reuters' recap:

Finance Minister Yoshihiko Noda said Japan acted on its own and aimed to stem speculative and disorderly currency moves.

 

Noda told a news conference he expected the Bank of Japan to take appropriate action. He declined to comment on the size of the intervention or say what currencies Japan bought.

The central bank, which started its policy meeting on Thursday would announce its policy decisions later in the day.

The action that followed days of official warnings that the currency, largely driven by broad dollar weakness, has passed levels that the export-reliant economy could live with, pushed the yen down to about 78.30 to the dollar from a level of around 77.

Some currency traders braced for further dollar declines should U.S. payroll data on Friday heighten concerns about the health of the U.S. economy. That could increase the chance of Japanese government intervention and make it more likely that the Bank of Japan will ease policy at a meeting ending on Friday.

Suzuki Motor Corp (7269.T) executive vice president Toshihiro Suzuki said on Wednesday it was "very sad" that no one was taking action against the strong yen, adding to a chorus of Japanese business leaders calling for action to weaken the currency.

Japan last intervened in concert with the Group of Seven in March, when expectations of fund repatriation after the earthquake pushed the yen to a record high.

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Quinvarius's picture

It is funny to see a country that is about to become unlivable due to radioactvity trying to force down its' currency.  I don't think they really need to worry about their currency maintaining any value over the next 5 years. 

El Viejo's picture

Yeah, a yearly tradition. Every year about this time they reevaluate their currency. Also, in April they change jobs. Kinda like musical chairs.

StychoKiller's picture

"If ya can't find'em, grind'em!"  How much can the transmission take before toothless gears fall off their shafts and start shooting through the floorboards??

SloMoe's picture

Impressive spike. Doubt is will last the week, but impressive, nonetheless....

johngaltfla's picture

Here's your history of intervention. Needless to say I don't think we'll see 100 or 130 any time soon....

 

http://johngaltfla.com/wordpress/wp-content/gallery/special-econ-charts/...

 

Manthong's picture

Nice flaming Zero pic, but it looks like somebody put the superstructure on wrong side of the carrier.

Strangely appropriate in this context. :D

papaswamp's picture

Bets on how long it will last?

 

Yen Cross's picture

  This sure isn't any intervention! Unless the BoJ , MoF, and Kampo are on the slow boat to China.  Tyler have touble logging in... Somthing wrong with your refresh button? I have to re-login every time I post... Thanks Yen

Yen Cross's picture

  Reset your password and clear your browser... it worked for me.

Mr Lennon Hendrix's picture

It should take Ben 15 minutes to get to his press.

johngaltfla's picture

Uh, 0831 Friday August 5, 2011.

Rodent Freikorps's picture

Asian dude: What is best in life?

Cohen the Barbarian: To crush their currencies. To see them driven before you. To hear the lamentation of their traders.

 

FunkyMonkeyBoy's picture

Who gives a s**t about all these various flavors of "Jew confetti", they're all just different colored turds.

Stick to the gold and silver, the bullets of death to the ceturies old Jewish banking scams.

Mr Lennon Hendrix's picture

Yep, the Japanese are definately of Jewish origen.  I heard that before the Jew Lizards built the Egyptian pyramids, and then migraded to Israel, they actually landed in Nippon!  Of course, the Jew Lizards covered the globe, and built pyramids everywhere, but they announced their prowess in Israel, none the less.

Pure Evil's picture

 

And, it doesn't help that fiat was created by the Chinese and imported from China back during Marco Polo's era.

But, If I remember correctly, I was told that the Chinese were the 'Jews' of the Orient.

So, maybe, those are the Jews he speaks of.

Mr Lennon Hendrix's picture

Chinese Jew Lizards from Outer Space!

Pure Evil's picture

Chinese Jew Lizard Chicks Suck Scaly Goyim Lizard Dicks.

e_goldstein's picture

and I totally thought that my weed was really good.

 

Scisco's picture

So much hate. You are a sad, sad individual. I pity you.

Reese Bobby's picture

It is a lazy hate.  The hate that comes from a a young lifetime of failure.  Blaming Jews is the default setting for immoral losers.  But they are almost all harmless cowards whose Mommies ruined them at a very young age.  It is best to laugh at them like any other clowns.  And of course I must hope they find Christ, and real balls.

billwilson's picture

Like that was not predictable. What idiots were buying yen at 77? 

fuu's picture

Benjamin "Makin it Rain" Bernanke? It is toxic after all.

scratch_and_sniff's picture

They seen the swiss getting away with it...it looks kind of flacid compared to the last time.

Mr Lennon Hendrix's picture

When there is nothing left to lose....

RoRoTrader's picture

 

No other resort, it appears........can run but cannot hide sort of thing.

Closed out equity shorts this AM.

Sitting in CASH, again.

StychoKiller's picture

Grateful Dead, "The Wheel:"

The wheel is turning
and you can't slow down
You can't let go
and you can't hold on
You can't go back
and you can't stand still
If the thunder don't get you
then the lightning will!

Won't you try just a little bit harder?
Couldn't you try just a little bit more?
Won't you try just a little bit harder?
Couldn't you try just a little bit more?

Round round robin run around
Gotta get back where you belong
Little bit harder, just a little bit more
Little bit farther than you than you've gone before

The wheel is turning
and you can't slow down
You can't let go
and you can't hold on
You can't go back
and you can't stand still
If the thunder don't get you
then the lightning will

Small wheel turn by the fire and rod
Big wheel turn by the grace of God
Everytime that wheel turn round
bound to cover just a little more ground

The wheel is turning
and you can't slow down
You can't let go
and you can't hold on
You can't go back
and you can't stand still
If the thunder don't get you
then the lightning will

Won't you try just a little bit harder
Couldn't you try just a little bit more?
Won't you try just a little bit harder?
Couldn't you try just a little bit more?

redarrow's picture

With everyone trying to keep their currency weak, this is great for QE3 as well as QE4...QE-INFINITY.  

lsbumblebee's picture

USD hiccups and burps. Sits up and asks for some Jell-O.

Ahmeexnal's picture

jell-o?  vagisil would be a better prescription

Yen Cross's picture

  I just shorted eur/aud that thing is parabolic, and a top is forming on the H-1 chart...

DonnieD's picture

Kyle Bass sends his thanks.

gianakt's picture

It looked like they may have sold some of there gold when they first started to intervene. 

chump666's picture

FX markets are spooked by intervention talk.  FX wars dedux, but with more panic this time.  Oil and gold should go bid, gold sold on the AUD CB bank intervention at somepoint.  The TRUE FX is about to happen.

chump666's picture

again like the SNB, good luck Japan, lets see if China will play the buy YEN on the dips again

gianakt's picture

This is a gift from Japan as I just sold the spoo's at the highs. 

chump666's picture

gonna be classic, oil bid gold bid.   the killer trade will be the AUD, once the RBA cuts.  maybe sept.  options on from the 100ma and below

Yen Cross's picture

  that RBA hold @ 4.75 was a huge buy signal for me...  I love those swaps!!!  Hell that thing could run 10 Big Figures and I would still be long, and running a counter hedge..

Stuck on Zero's picture

Answer this ...  if the BoJ sold Y500 billion on the currency market they received something for it, right?  If they received mostly dollars then this takes the $$ out of U.S. circulation. These $$ probably come courtesy of the Bernanke zero interest rate Fedsters.  That means longer recover in the U.S. and dragging economy leading inevitably to a falling dollar.  Does this make sense?

Yen Cross's picture

  If you read the charts the biggest yen moves were against The  GBP, AUD, EUR, not the USD.   Keep doing research , I respect that in you...

B-rock's picture

As of now, USD : 2.38%

              GBP  : 2.1%

              EUR  : 1.99%

              AUD  : 1.98%

Yen Cross's picture

which 1/3 'rd of the trading cycle are you running those numbers from?  

GoinFawr's picture

Hehe, it's like this post was MADE for you YC! Shine on!

Yen Cross's picture

  You know I have deep respect for you G/F Thanks for your kind words.