Hi Everyone, June 14 2018 The usd/jpy reversed but first it spiked. How much money does it take to manipulate such a move ? Or how many contracts ? Does anyone know ? I understand it as a liquidity grab by the trading houses before the intended directional change.
In my opinion it depends on the liquidity at the time. Not during peak trading hours so a couple MM dollars (or less) of contracts could cause this spike. Likely a lot less. I only trade these contracts during peak hours as the liquidity during these times can stop you easily.
I'd be willing to through a couple million (before leverage) at a pair tomorrow morning. Get a couple more people together, throw the gains up even higher.
This spike was caused by the FOMC news event, this is always a very volatile event and can cause even larger spikes and pullbacks.
The more interesting aspect is where this spike stopped.... Its a classic test of the distribution which ended around May 22.
Drop down to a minute chart and the spike almost fades away to just a short up trend followed by a short down trend: