BOJ intervention this morning. G7 intervention ahead? Weaker yen?

Price action was fairly quiet during US session ahead of the G7 call on Japan. U.S initial jobless claims fell as expected and continued to signal an improving labor market. CPI rose as expected as well and the Philadelphia Fed manufacturing figure hit a high of 43.4. the G7 made a statement that they would monitor exchange markets closely and to cooperate as appropriate.

The Euro held strong during the European session due to the strong Spanish bond auction. It stayed firm overnight against the USD while the crosses were a whole different story.

USDJPY was quite range-bound yesterday during London and New York session. The massive move this morning upwards came about as G7 ministers agreed on a joint intervention and we saw BOJ intervening into the market. USDJPY spiked up 150 points on the move.

Aussie had a short movement on the downside when update on the UN Security Council vote emerged after the New York close. The vote went in favor of establishing a no-fly zone in Libya, which gives the go ahead for military intervention in the North African state.

After that massive move on yen, it’s been a little quiet. I’m hoping for a retracement on yen so that I can buy into it, as I do see USDJPY hitting 83 levels and maybe even 85!

Anyone managed to profit from that massive yen move?

Data Today

German PPI – 7am GMT

Eurozone trade balance – 9am GMT

Happy Trading!

FxTaurian