Stop taking positions that are awaiting intervention
Good evening.
The USD/JPY has approached 162 yen, and it seems traders believe we are entering a phase of currency intervention.
In the market there are a large number of short positions and sell orders, waiting for the right moment to come. It is precisely a standby situation.
But realistically, as a matter of market mechanics, to maximize the effect of intervention, the current elimination of short positions is necessary.
Yes. If we do not force the short to be cut, we cannot execute it.
Even for a moment, if the yen were to weaken beyond 165 yen, and burn off the existing shorts, then intervening would be more realistic.
Rather than waiting and setting up a net now, it is safer to enter during the surge after hearing the 165 yen level.
The USD/JPY has approached 162 yen, and it seems traders believe we are entering a phase of currency intervention.
In the market there are a large number of short positions and sell orders, waiting for the right moment to come. It is precisely a standby situation.
But realistically, as a matter of market mechanics, to maximize the effect of intervention, the current elimination of short positions is necessary.
Yes. If we do not force the short to be cut, we cannot execute it.
Even for a moment, if the yen were to weaken beyond 165 yen, and burn off the existing shorts, then intervening would be more realistic.
Rather than waiting and setting up a net now, it is safer to enter during the surge after hearing the 165 yen level.