Friday 29 January 2016 "Markets Turmoil After Nikkei Reports Bank Of Japan Discussed Negative Interest Rate Policy" http://www.zerohedge.com/news/2016-...nk-japan-discussed-negative-interest-rate-pol At 10.20pm (NY) on Thu 28 Jan, USD/JPY was at 118.64. (Gold/USD Apr 2016 at 1115.20) Some wild-ish trading in the next 18 minutes saw USDJPY move to 119.12. (Gold/USD Apr 2016 at 1113.90) ************************************** Then it went crazy at 10.38pm, USDJPY soared, reaching 121.42 at 10.42pm. (Gold/USD Apr 2016 at 1111.10) "BoJ adopts negative interest rate" http://www.ft.com/fastft/2016/01/29/boj-adopts-negative-interest-rate/ "Bank of Japan Keeps Stimulus Target on Hold, Adopts Negative Rates" http://www.bloomberg.com/news/artic...adopts-negative-interest-rates-by-vote-of-5-4 Governor Haruhiko Kuroda’s board voted 5-4 to put an interest rate of -0.1 percent on current accounts held at the central bank. .
BoJ policy announcements: https://www.boj.or.jp/en/mopo/mpmdeci/mpr_2016/index.htm/ At 10.20pm (NY) on Thu 28 Jan, USD/JPY was at 118.64. Some wild-ish trading in the next 18 minutes saw USDJPY move to 119.12. Then at 10.38pm, USDJPY soared, reaching 121.42 at 10.42pm. But less than one hour later, at 11.21pm, USDJPY was back at 119.12, the level where it was before the BoJ announcement. Gold/USD was above $1116, above both the 10.20pm level and the 10.38pm level. .
Another thread http://www.elitetrader.com/et/index...expect-from-a-negative-interest-rates.297489/ Another Bloomberg article http://www.bloomberg.com/news/artic...-than-2-as-boj-adopts-negative-interest-rates .
Mish article: http://globaleconomicanalysis.blogspot.com.au/2016/01/bank-of-japan-adopts-negative-interest.html A second ZH article: http://www.zerohedge.com/news/2016-...ult-more-currency-wars-and-global-growth-slow .
Just after 10am on Thu 3 Feb (NY time), USD/JPY dropped below 118.50, the level it was trading at in the minutes before the wild moves on Thu 28 Jan. It went as low as 118.25. .
Kuroda's NIRP-mania has been completely faded now. Both Yen and Japanese stocks (down 1000 points from their high) are back where they started. Central Bank Jackasses for the win!
USD/JPY went as low as 117.50, more than 1 JPY below the levels before the massive rise seen late Thursday (NY time). http://www.zerohedge.com/news/2016-...rash-1000-points-erase-all-kurodas-nirp-gains .
It's turning into an Emperor's New Clothes scenario now...The same trickery that could "scare" the market into massive squeezes and fuel several more months of the CB bull market is now falling flat...Heck they've even gone on record with their equity buying to entice retail investors to follow...Sort of like the "Simple Jack's" of CB policymakers..."never go full retard"
The BOJ pushed one of the world's largest pension funds, the Japan gov't pension fund, to get out of risk free bonds and move into risk assets. "The bitter irony for Japanese pension funds? The very JGBs that they sold to the BOJ upon the BOJ’s urging have since soared in price, while the prices of the risk assets they bought upon the BOJ’s urging have plunged."--wolfstreet.com The future for US savers, too?
(Possible) BoJ intervention at about 7.20am ET on Thu 11 Feb. http://www.zerohedge.com/news/2016-02-11/bank-japan-intervention-sends-usdjpy-soaring USD/JPY was at 111.51 at 7.20am (gold Apr 1238.10) reached a high of 113.20 at 7.21am (gold Apr 1233.50) USD/JPY then retraced most of the move, declined as low as 111.69 at 7.23am (gold Apr 1237.00) .