- Analytics
- News and Tools
- Market News
- USD/JPY: At 150, a market reaction can occur that looks like an intervention – Commerzbank
USD/JPY: At 150, a market reaction can occur that looks like an intervention – Commerzbank
USD/JPY still trades around the 149 level. Economists at Commerzbank analyze the pair’s outlook.
The risk of long USD/JPY positions seemed too high
Given Tuesday's exchange rate move (chart below), why is no one really sure if we've seen an intervention? Well, there had been a lot of speculation in the run-up that the MOF might take action on a break of the 150 level in USD/JPY.
Therefore, it stands to reason that quite a few market participants wanted to sell USD/JPY as soon as this event occurred – because then the risk of long USD/JPY positions seemed too high. If many do this at the same time, a market reaction can occur that looks like an intervention.
Source: Bloomberg
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
