Japan fired BOJ gun !

[Astroboy]

Japan intervened in global currency markets on Wednesday to sell yen for the first time in six years in a bid to stop its relentless rise from threatening a fragile economic recovery.

Japan continued to intervene in the currency market during New York trading hours, and traders at major foreign exchange dealers estimated Wednesday's efforts amounted to around $20 billion for only one day.
Japan intervenes to weaken yen; more to come

J-government/BOJ has pushed JPY back to 85 yen/USD from 82 yen of yesterday's 15-year high in Japan, and it consinues to intervene the market in London and now in NY. Japan's BOJ gun firing is expected to beat hedge funds, buying JPY. GO BOJ !

 

[hsakakibara1]

Finally the BOJ has showed some sense and BALLS!!!!

 

[Astroboy]

Hedge funds hit by yen intervention

Japan's surprise intervention in currency markets has caught some of the world's largest hedge funds by surprise, with big names suffering sharp reversals as the yen tumbled.

The Japanese currency saw its biggest daily fall this year on Wednesday, dropping more than 3 per cent from a 15-year high of Y82.88 against the dollar after the Japanese ministry of finance said that it had staged an intervention in the market, the first such action by Tokyo in six years.

London-based hedge funds such as AHL, the $21bn fund run by the FTSE 100-listed Man Group, the $5bn Winton Capital Futures fund and the $1bn Aspect Diversified fund all suffered on their bullish yen positions, according to people familiar with the funds' performances.

All three funds use computer models to automatically spot and ride market trends, making them vulnerable to unexpected events including surprise action by governments and central banks. Other funds understood to have been hit by the intervention include several large global macro hedge funds and currency trading specialists.

Strong trends such as the appreciating yen have led to big gains for algorithmic momentum following hedge funds in August. But September is proving trickier.

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Japan's BOJ gun fire works well. Hedge funds cannot win because BOJ is a part of sovereign nation, while they are private companies.

 

[Dogen Z]

QE

BOJ seems hesitant to copy the Fed's quantitative easing and buy financials assets to bouy the economy. I advocated such step before but I understand BOJ's caution. With a large part of the population on fixed income, it would be dangerous to push up the money supply especially when the Fed is unleashing such a huge sum in the global market. I think the BOJ is taking a wait and see what happens in the US before it makes a move. Prudent, I think.


(5 min. later)
Just after posted that, I found out that BOJ will start buying REITs in mid December. Well, good luck BOJ. I hope it works.