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Yentervention Time

Submitted by Tyler Durden on 10/30/2011 21:35 -0400

Update: It's Official

AZUMI SAYS JAPAN INTERVENED IN THE CURRENCY MARKET
AZUMI: JAPAN WILL CONTINUE TO INTERVENE UNTIL HE'S SATISFIED
AZUMI SAYS INTERVENTION WAS DUE TO STRONG SIGNS OF SPECULATION - thank god Mrs Watanabe is not speculating on the short side.

Just in time for the MF Global news, we have what appears the latest Yentervention episode, as the USDJPY has just soared over 250 pips.We have no confirmation as of yet and could be merely a risk off move on the MF Global headlines. Or, potentially, was MF short a few yards of USDJPY and now that the end is in sight, is promptly unwinding all legacy positions?

And longer term

Chart: BBG

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Sun, 10/30/2011 - 21:36 | 1827174 ag3nt0rang3

Just Yen Time

Sun, 10/30/2011 - 21:52 | 1827231 Mr Lennon Hendrix

Nice, I love Yentervention time! Now we should see a gold rally as the Fiat Ponzi collapses from Europe to Japan!

Gold should test $1700 by Tuesday before a sharp upmove back to $1900 next week. Silver/oil to follow suit respectively.

Sun, 10/30/2011 - 21:56 | 1827249 HedgeAccordingly

all offers lifted.. http://hedge.ly/u0DU9K

Sun, 10/30/2011 - 22:05 | 1827280 nope-1004

And this intevention will last hours, or minutes?

Sun, 10/30/2011 - 22:13 | 1827296 fourchan

sell gold buy dollars lol, idiots.

Mon, 10/31/2011 - 07:00 | 1827885 Overflow-admin

Dollars can be printed (and thats an euphemism); gold can't. Nuff said.

*BUY GOLD*

Sun, 10/30/2011 - 22:24 | 1827322 Mike2756

Seems like they implied that there will be unlimited printing.

Sun, 10/30/2011 - 22:39 | 1827358 Thomas

The levels of human folly must keep rising. History will write an ugly chapter on this era.

Sun, 10/30/2011 - 23:32 | 1827438 flacon

> History will write an ugly chapter on this era.

Not if there aren't any humans left to write it.

Sun, 10/30/2011 - 22:03 | 1827269 strannick

Well, golds halfway to $1700, down $20, so the first part of your hypothesis seems to be forthcoming. Guess the interventionists couldnt hammer gold anymore by linking it to the Euro, so now they'll try the yen.

Sun, 10/30/2011 - 22:13 | 1827294 Mr Lennon Hendrix

I called for a downmove to $1650 a few hours ago, so by $1700 I guess I mean somewhere around $1675. But this is what happens: the paper traders are panning for gold, by loaning it out of the Central Banks.

This quells demand, but shortens supply. The move up will be just as sharp, but longer lasting than the down move.

So a retrace to the mid $1600s, then a move up to $1900, maybe higher, depending on what the Fed says this week.

We should definately see $2200 by the solestice; the way the Fiat Ponzi is crumbling, that is a given.

Sun, 10/30/2011 - 22:21 | 1827316 trav7777

gold up gigantic in JPY; watch it ratchet higher across currencies over time. POG selloff not over yet in BRL

Sun, 10/30/2011 - 22:15 | 1827301 russki standart

Made $11,820 off my yen short..... Azumi is the best!

Sun, 10/30/2011 - 22:18 | 1827306 European American

"as the USDJPY has just soared over 250 pips", matching the number in micro Sv/hr of Radioactive Hot Particles continuely spewing out of Fukushima since their little mishap.

Mon, 10/31/2011 - 02:53 | 1827765 knukles

Oh fuck, man. That is one bad omen.
Coefficient of correlation between the $/yen and radiation levels.

So if the US has 13,000 warheads, each with an average yield of some 47KT, then....
Watch... Goldman's next research report.

Precession.
It's all linked to Precession.
The ponzi, NWO, tunnels, HAARP, pole shift...
Precession.

It's getting really weird.

Sun, 10/30/2011 - 21:38 | 1827175 DormRoom

Sun, 10/30/2011 - 21:37 | 1827178 Yen Cross

Everyone wanted to test the "options on the bottom side of the trade." Shear Greed! What's a hundred pips between friends?

Sun, 10/30/2011 - 21:40 | 1827188 vocational tainee

let me be your friend..

Sun, 10/30/2011 - 21:40 | 1827189 DoChenRollingBearing

Awesome spike. That's almost, what, 3% in minutes!

Sun, 10/30/2011 - 21:46 | 1827214 knukles

Not only Yen, take a look at spot bullion, down about $10+ in just a few moments. Nothing like unloading a ton (LOL) of the stuff in Asia during thin hours.
Yup.... reminds me of that old quote by Volcker after the Plaza Accord where he said that they hadn't intervened in gold, but should have in retrospect to ensure appearance of "order".

Sun, 10/30/2011 - 21:55 | 1827245 Mr Lennon Hendrix

After all the Yentervention these last few years, I wonder how much gold Japan has left on their books? Probably not much.

So demand has been quelled momuntarily thanks to Japan loaning gold out, but with a tighter supply, there will soon be another leg up.

Long live the Gold Bull!

Sun, 10/30/2011 - 21:41 | 1827193 onlooker

Look at the chart. Where is OCT 31???????????????????????????

Sun, 10/30/2011 - 21:42 | 1827196 CashCowEquity

USD shot up 72cents in 10min

Sun, 10/30/2011 - 21:42 | 1827198 Ecoman11

Japanese Rooster Tail.

Sun, 10/30/2011 - 21:42 | 1827199 bnbdnb

LOL, I was in trading that one. Bam made some $$$.

Sun, 10/30/2011 - 21:46 | 1827204 Pretorian

This time anger of JPY nation is greater than day after Hiroshima. KOnjicuva!

Sun, 10/30/2011 - 21:45 | 1827207 chump666

Look like an unwind.

But, something else is in the mix. AUD is unwinding hard. MF could start a liquidation trade across the board. Also USD bids coming through.

tight.

Sun, 10/30/2011 - 21:49 | 1827222 Yen Cross

Chump/ lay low and buy the pulses. I suspect 80 is the first target.

Sun, 10/30/2011 - 21:58 | 1827253 chump666

I hear ya brother.

Should send equities down on Europe's open, S&P futures are down. There is an index short trade here.

Wow see that spike! hahaha amazing...

Sun, 10/30/2011 - 21:46 | 1827211 RobotTrader

Gold, silver, ES, EUR, AUD just cratered

Sun, 10/30/2011 - 22:01 | 1827260 Mr Lennon Hendrix

Yeah, so? In order to create Yen, Japan had to do something. They sold dollars, gold, oil derivatives, probably some Chinese REITs.

Don't forget, Japan has openly admitted to using a Plunge Protection Team, and buying everything from US equities to commodities to REITs to Russian prostitutes.

Mon, 10/31/2011 - 07:19 | 1827918 malikai

I wonder how their Russian prostitutes position is holding out. I would have to say that's probably a solid investment these days.

Sun, 10/30/2011 - 21:49 | 1827215 Outlaw Of The W...

reverse spritta. This might last a week and a half.

Sun, 10/30/2011 - 21:47 | 1827217 Dr. Engali

Looks like an unwind to me.

Sun, 10/30/2011 - 21:48 | 1827220 SHEEPFUKKER

Ahhhh, don't you just love free markets.

Sun, 10/30/2011 - 21:50 | 1827223 Outlaw Of The W...

don't think the jews didn't know about this well ahead of time.

Sun, 10/30/2011 - 22:01 | 1827267 Schmuck Raker

Aborigines told the Jews.

Sun, 10/30/2011 - 22:03 | 1827272 Mr Lennon Hendrix

The Jews are Lizard People sent from Sirius, the Bear Star, to control the world, and take the gold back to their galaxy because their planet's ozone needs it because the radiation from their Star Sirius is causing them to get skin cancer!

Sun, 10/30/2011 - 22:16 | 1827297 Pure Evil

You've been watching too much Ancient Aliens on the History Channel.

Sun, 10/30/2011 - 22:27 | 1827327 Mr Lennon Hendrix

Cancer man! Cancer!!

Sun, 10/30/2011 - 22:58 | 1827391 Pure Evil

Are we talkin' astrology or circles of latitude?

Sun, 10/30/2011 - 23:15 | 1827418 Mr Lennon Hendrix

Both?

Sun, 10/30/2011 - 22:14 | 1827225 Yen Cross

So now the markets are free? Just because you got a freebee/ Wise up young one! Easy come Easy go 0:(

What ya little prick! You had to junk me because you lost your Burger King pay check? I" ll think about ya when I lose my sushi tomorow morning.

Sun, 10/30/2011 - 21:50 | 1827227 RobotTrader

Yeah, more proof that "Paper" and "Jawboning" rules over physical.

Sun, 10/30/2011 - 22:05 | 1827276 Mr Lennon Hendrix

Gold went from $300 to $1900 in a decade. How's your paper?

Sun, 10/30/2011 - 22:19 | 1827309 Pure Evil

It burns well and I can use it to wipe my arse.

Mon, 10/31/2011 - 06:57 | 1827879 malikai

You must have the toughest arse in the history of man. I can use my paper to get gold. Try it sometime. Your arse will thank you.

Sun, 10/30/2011 - 21:53 | 1827228 trampstamp

A bit odd since the BOJ with G7 internvention can't make it spike that quick in 10 minutes with billions. Something is up... Either MF was the Ace for previous BOJ intervention and is de-leveraging their short positions in USD/JPY or MF is the catalsyst for tomorrow's Holloween massacre. BOOOOOOOOOOOO!

Sun, 10/30/2011 - 21:53 | 1827236 CashCowEquity

jawboning?

more like plain ole "boning"

Sun, 10/30/2011 - 21:53 | 1827238 Yen Cross

The chf via the usd and eur are barely touched. I know what is coming next!

Sun, 10/30/2011 - 21:54 | 1827239 max2205

Wowsere

Sun, 10/30/2011 - 22:22 | 1827246 bob_dabolina

I went long the dollar against the yen last week

Sun, 10/30/2011 - 21:55 | 1827248 SHEEPFUKKER

Errrr, markets are not free. I guess sarcasm gets lost in the translation. ;)

Sun, 10/30/2011 - 21:57 | 1827251 max2205

How many rouge traders blow up on this one. LoL

Sun, 10/30/2011 - 22:04 | 1827273 lolmao500

A whole lot. Free markets? BS.

Sun, 10/30/2011 - 22:01 | 1827252 Pretorian

I think Goldman and gang got caught in between long EUR USD . AUD USD...... he is melting , just look the ticks they try to fight. He expected intervention but nothing like this. They will announce this week closing another fund or chapter 11.

Sun, 10/30/2011 - 22:00 | 1827255 Mohan

"AZUMI: JAPAN WILL CONTINUE TO INTERVENE UNTIL HE'S SATISFIED"

Wow. Nice burst of honesty here? Or, he is saying it's now "personal." Either way, there is no spin in the econo-gibberish. Plain and spline, "I will intervene until I am satisfied." When will Ben admit that?

Sun, 10/30/2011 - 22:10 | 1827271 bob_dabolina

When will Ben admit that?

Ben has literally said that he will fly around in a helicopter throwing bags of money out. That was paraphrased but he said something very close to that.

He said "The U.S. government has a technology, called a printing press (or today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at no cost." (He referred to a statement made by Milton Friedman about using a "helicopter drop" of money into the economy to fight deflation.)

http://en.wikipedia.org/wiki/Ben_Bernanke

Sun, 10/30/2011 - 22:28 | 1827317 Mr Lennon Hendrix

Here is the full quote:

Like gold, US dollars have value only to the extent they are strictly limited in supply. But the US Government has a technology, called the printing press (or today it's electronic equivalent), that allows it to produce as many US dollars as it wishes at essentially no cost. By increasing the number of US dollars in circulation, or even by credibly threatening to do so, the US Government can also reduce the value of a dollar in terms of goods and services, which is the equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation.

-Ben Shalom Bernanke

Interesting that he leads by comparing the dollar, todays "standard" of money, to the old standard, gold, no?

This is the speech that essentially landed Bernanke the job as Fed Chair.

Sun, 10/30/2011 - 23:07 | 1827410 Seer

"a determined government can always generate higher spending and hence positive inflation."

Uh... spot the problematic word in That sentence (I helped, a bit :-) ).

Perhaps this is another of those "make the pie higher" statements?

In the distance I hear Mother Nature laughing....

Sun, 10/30/2011 - 22:06 | 1827279 Dr. Engali

Yeah no shit. Why doesn't he jus say" our Japanese pwinters are much faster than your American (made in China) pwinters" ?

Sun, 10/30/2011 - 22:01 | 1827265 Yen Cross

Goldmans' , knew what was up. They have been talking down "risk", all weekend.

Sun, 10/30/2011 - 22:03 | 1827270 lolmao500

AZUMI: JAPAN WILL CONTINUE TO INTERVENE UNTIL HE'S SATISFIED

So basically till the yen is at least at 90? Good luck with that.

Sun, 10/30/2011 - 22:17 | 1827303 Yen Cross

You are 100% correct. If any trader was smart, the would start re-allocating their trading strategy for the rest of the year.

Japan isn't doing month end flows. I think the E/U is F..Ked for the time being.

Sun, 10/30/2011 - 22:04 | 1827274 sbenard

Is this intervention what tanked the Euro at 9:30 EST too?

Sun, 10/30/2011 - 22:21 | 1827314 Yen Cross

Simultaneous selling. usd/jpy buying carried over to eur/jpy buying ( the crosses)...

Sun, 10/30/2011 - 22:05 | 1827275 SHEEPFUKKER

There are no winners in paper currency wars.....only losers. I'm so tired of this silly game. Make it stop!!

Sun, 10/30/2011 - 22:05 | 1827278 holdbuysell

Questions:

What does Yoda do to Yentervene? What is the mechanism to manipulate the currency? Buy dollars, sell yen? Is printing of yen occurring?

Sun, 10/30/2011 - 22:12 | 1827282 chump666

Zero hedge is 100% on the money. The selling on the AUD, NZD and CAD looks like legacy positions unwinding, commodity market should get hit too. SO there is a ping pong trade against equities. November risk aversion kicking in.

C'mon HFT's join the party you low volume con jobs, capitulate this f*cking market. thanks.

Sun, 10/30/2011 - 22:11 | 1827291 lolmao500

If risk is off, that means the stock market is gonna get killed this week?

Sun, 10/30/2011 - 22:13 | 1827295 John_Galt

Come on Yentervention! please last longer for a day this time so i can go out at by a laptop on my lunch break...oh wait. too late already :(

Sun, 10/30/2011 - 22:17 | 1827304 sockcutter moto...

oooooh that dastardly mrs watanabe!

Sun, 10/30/2011 - 22:18 | 1827307 Jim in MN

I think he mistook the currency for his wife. Lucky wife!

Sun, 10/30/2011 - 22:20 | 1827311 PicassoInActions

alpary us fucked me over

i was waiting for BOJ and had 3 lots from 75.60 , some how magaclly those mf put take profit only 20 pips above and i do have the video recording of that....

time to change the brouker

Sun, 10/30/2011 - 22:28 | 1827328 SHEEPFUKKER

Perhaps it's a sideshow for when the U.S. debt ticks over to 15 trill. The sheeple will be so confused.

Sun, 10/30/2011 - 22:29 | 1827331 Mike2756

They always pull this stuff on a weekend.

Sun, 10/30/2011 - 22:36 | 1827351 Lady Heather...UNCLE

The immediate rationality is to short E's...therefore one needs to be VERY careful doing this

Sun, 10/30/2011 - 23:00 | 1827398 nathan1234

"AZUMI: JAPAN WILL CONTINUE TO INTERVENE UNTIL HE'S SATISFIED"

So when will Azumi reach orgasm point!

Sun, 10/30/2011 - 23:13 | 1827417 penisouraus erecti

Beware of erections lasting longer than 4 hours....

Sun, 10/30/2011 - 23:40 | 1827457 Me XMan

Is he drinking Gingsen tea before sex?

Sun, 10/30/2011 - 23:52 | 1827496 SilverDoctors

Perhaps those who scoffed several weeks ago when it was pointed out that the previous 2-3 silver smashes have all occured on ocult illuminati "holy" days may wish to revisit the topic considering tonight's (Oct 31st in Japan and Europe) action with Yen, and subsequent gold and silver smash.

Sun, 10/30/2011 - 23:58 | 1827513 LookingWithAmazement

Therefore the dollar will never collapse: other currencies will "collapse" as well, because of intervention.

Mon, 10/31/2011 - 00:28 | 1827568 Hephasteus

The country made 80,000 people homeless when the reactors blew.

Japanese citizens are JUST NOW recieving payment. They read a 600 page instruction manual and fill out 60 pages of forms and attaching to recieve repayment. Any mistakes they start over.

And for some reason our system can put up 90 apple stores in a couple days or 300 circuit cities but can't rebuild anything that belongs to normal people or government. Christchurch is still screwed 3 ways to sunday. They want to erect temporary businesses and homes with shipping containers but it will slow down the rebuilding even more. They too are gong through bueracratic hoop machine meant to slow down the repayment process as much as possible. Lest they ignite a low supply rebuilding sytem with massive amounts of money resulting in everybody getting one hell of a lot less than their insurance paid for.

Mon, 10/31/2011 - 01:40 | 1827657 BigInJapan

Azumi IS Mrs. Watanabe.
Don't think for one minute that Japanese banks didn't short the Yen and make a pile out of this. They all sleep on the same futon.

Yentervention Time

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