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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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Wed, 08/03/2011 - 21:10 | 1522529 Quinvarius
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. 

Wed, 08/03/2011 - 21:25 | 1522590 zerohandle
zerohandle's picture

dude its tradition. 

Wed, 08/03/2011 - 21:26 | 1522592 zerohandle
zerohandle's picture

dup

Wed, 08/03/2011 - 22:03 | 1522661 El Viejo
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.

Thu, 08/04/2011 - 01:22 | 1523010 StychoKiller
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??

Wed, 08/03/2011 - 22:06 | 1522670 caerus
caerus's picture

couldn't agree more

Wed, 08/03/2011 - 21:11 | 1522530 anvILL
anvILL's picture

delete.

Wed, 08/03/2011 - 21:10 | 1522531 SloMoe
SloMoe's picture

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

Wed, 08/03/2011 - 22:01 | 1522657 johngaltfla
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/...

 

Wed, 08/03/2011 - 23:10 | 1522791 Manthong
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

Wed, 08/03/2011 - 21:13 | 1522543 papaswamp
papaswamp's picture

Bets on how long it will last?

 

Wed, 08/03/2011 - 21:19 | 1522562 Yen Cross
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

Wed, 08/03/2011 - 22:03 | 1522659 Rodent Freikorps
Rodent Freikorps's picture

I'm having the same problem.

Wed, 08/03/2011 - 22:31 | 1522710 Yen Cross
Yen Cross's picture

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

Thu, 08/04/2011 - 00:39 | 1522836 GoinFawr
GoinFawr's picture

Me too

Wed, 08/03/2011 - 21:31 | 1522600 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

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

Thu, 08/04/2011 - 05:18 | 1523100 johngaltfla
johngaltfla's picture

Uh, 0831 Friday August 5, 2011.

Wed, 08/03/2011 - 21:15 | 1522545 Rodent Freikorps
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.

 

Wed, 08/03/2011 - 21:15 | 1522546 FunkyMonkeyBoy
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.

Wed, 08/03/2011 - 21:35 | 1522609 Mr Lennon Hendrix
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.

Wed, 08/03/2011 - 22:13 | 1522676 Pure Evil
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.

Wed, 08/03/2011 - 22:26 | 1522701 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Chinese Jew Lizards from Outer Space!

Wed, 08/03/2011 - 22:34 | 1522718 Pure Evil
Pure Evil's picture

Chinese Jew Lizard Chicks Suck Scaly Goyim Lizard Dicks.

Thu, 08/04/2011 - 05:02 | 1523093 e_goldstein
e_goldstein's picture

and I totally thought that my weed was really good.

 

Wed, 08/03/2011 - 22:31 | 1522709 Scisco
Scisco's picture

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

Wed, 08/03/2011 - 23:24 | 1522839 Reese Bobby
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.

Wed, 08/03/2011 - 21:15 | 1522548 billwilson
billwilson's picture

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

Wed, 08/03/2011 - 21:24 | 1522575 fuu
fuu's picture

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

Wed, 08/03/2011 - 21:16 | 1522552 MsCreant
MsCreant's picture

Phatt finger?

Wed, 08/03/2011 - 21:17 | 1522554 scratch_and_sniff
scratch_and_sniff's picture

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

Wed, 08/03/2011 - 21:25 | 1522585 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

When there is nothing left to lose....

Wed, 08/03/2011 - 21:24 | 1522586 RoRoTrader
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.

Thu, 08/04/2011 - 01:28 | 1523014 StychoKiller
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?

Wed, 08/03/2011 - 21:28 | 1522596 redarrow
redarrow's picture

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

Wed, 08/03/2011 - 21:32 | 1522603 lsbumblebee
lsbumblebee's picture

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

Thu, 08/04/2011 - 00:34 | 1522968 Ahmeexnal
Ahmeexnal's picture

jell-o?  vagisil would be a better prescription

Wed, 08/03/2011 - 21:34 | 1522608 Yen Cross
Yen Cross's picture

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

Wed, 08/03/2011 - 21:43 | 1522623 DonnieD
DonnieD's picture

Kyle Bass sends his thanks.

Wed, 08/03/2011 - 21:52 | 1522642 gianakt
gianakt's picture

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

Wed, 08/03/2011 - 22:03 | 1522663 chump666
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.

Wed, 08/03/2011 - 21:55 | 1522648 chump666
chump666's picture

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

Wed, 08/03/2011 - 22:00 | 1522655 gianakt
gianakt's picture

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

Wed, 08/03/2011 - 22:05 | 1522667 chump666
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

Wed, 08/03/2011 - 22:34 | 1522717 Yen Cross
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..

Wed, 08/03/2011 - 22:35 | 1522722 Stuck on Zero
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?

Wed, 08/03/2011 - 22:47 | 1522758 Yen Cross
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...

Wed, 08/03/2011 - 23:14 | 1522816 B-rock
B-rock's picture

As of now, USD : 2.38%

              GBP  : 2.1%

              EUR  : 1.99%

              AUD  : 1.98%

Wed, 08/03/2011 - 23:36 | 1522872 Yen Cross
Yen Cross's picture

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

Wed, 08/03/2011 - 23:25 | 1522831 GoinFawr
GoinFawr's picture

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

Wed, 08/03/2011 - 23:34 | 1522866 Yen Cross
Yen Cross's picture

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

Wed, 08/03/2011 - 23:38 | 1522878 ThirdCoastSurfer
ThirdCoastSurfer's picture

It was reported the sale was to two primary dealers. Y500 = $800m USD (whatever 500b/77 is) but these dealers turn around and cover their hedge positions (because as with all bookies the vig is the juice and the action is always at breakeven) on the FX market which stirs up the hornets nest and trips all the other stops and buys. Then you see the tables are turned because the gambit is not that the brokers now have Y500, it's that the BOJ now has $800m freshly printed USD to throw around where ever it sees smoke. Beggar thy neighbor. 

Wed, 08/03/2011 - 23:16 | 1522821 Reese Bobby
Reese Bobby's picture

Central banks are truly brilliant.  The last time they tried to sit on the Yen it worked for a whole 3 weeks.  Albert Einstein would find them funny...

Thu, 08/04/2011 - 00:04 | 1522924 Sunshine n Lollipops
Sunshine n Lollipops's picture

I woulda bagged ALL those pips if I hadn't been fuckin' around here readin' all these riveting comments. You bastards.

Thu, 08/04/2011 - 00:04 | 1522925 unununium
unununium's picture

How convenient.  All three major currencies being wildly printed at the same time.  Coordinated free-fall.  My bet goes to the ground winning.

Thu, 08/04/2011 - 00:24 | 1522953 Jovil
Thu, 08/04/2011 - 01:32 | 1523015 StychoKiller
StychoKiller's picture

I can only sit back and shake my head at the stupidity of this! :>(

Thu, 08/04/2011 - 01:48 | 1523022 zerohandle
zerohandle's picture

This is bullish for earth quakes.

Thu, 08/04/2011 - 05:12 | 1523095 joak
joak's picture

Tyler said BoJ would do nothing. I have lost faith in the divine nature of Tyler, he is just a mortal being...

Thu, 08/04/2011 - 06:39 | 1523119 Edward Fiatski
Edward Fiatski's picture

I've felt disturbance in the Force... as if thousands of Longs were heard and rejoiced, if only for a brief period of time, before the Dark side of the Short kicked in.

This Yentervention™ should last for a few hours. LOL /short bitchez.

Wed, 09/14/2011 - 04:42 | 1667354 chinawholesaler
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