Yen is making some serious moves

t-bone

All that's happened is its just broken some significant support (on USD/JPY). open up your daily chart.

 

T-Bone, not being smart, obnoxious or anything, but these kind of moves arent exactly once in a life time events.... do your homework and youll see it happens more than you think. Often on no or little obvious news (someone always manages to come up with an explanation after the fact though)

 

Apparently, it's on the back of the China commodity stories. First, this:

LONDON, July 8 (Reuters) - A cape cargo of high-ash, low volatile content Australian coal is being offered already on the water at $72.00 a tonne CIF South China after the Chinese buyer cancelled the contract, traders said.
"We heard rumours but we now know this cargo is absolutely real. We were offered it and checked the details of the shipment. All we know is the Chinese buyer walked away," one trader said.
This is the first confirmation of a Chinese coal buyer cancelling a contract, traders said.
There have been rumours for a week or so that Chinese buyers were trying to escape from contracts because of high stockpiles and slower end-user consumption in China.
Trader and producer coal suppliers in Australia and Russia have come to depend on Chinese demand to place their spot coal because demand in the Atlantic remains extremely depressed.

Also the 4 Rio Tinto employees detained by Chinese authorities doesn't help.

 

Yen Rises to Four-Month High on Earnings Outlook, Safety Demand

By Ye Xie and Anchalee Worrachate

July 8 (Bloomberg) -- The yen rallied to a four-month high against the dollar and advanced versus the euro as speculation U.S. corporate earnings will drop and an unexpected decrease in Japanese machinery orders encouraged demand for safety.

Japan’s currency climbed for a second day against all 16 of its most-traded counterparts tracked by Bloomberg including the South African rand and Australian dollar. The pound declined below $1.60 for the first time in a month on bets the Bank of England will expand its asset-purchase program after its meeting tomorrow, increasing the supply of Britain’s currency.

“Everyone is impressed by the yen move,” said Jack Iles, who oversees $2.5 billion assets at MFC Global Investment Management in Boston. “Earnings season is starting with a vengeance. The posturing is risk off.”

The yen gained as much as 2.8 percent to 92.16 versus the dollar, the strongest level since Feb. 18, before trading at 92.33 at 12:25 p.m. in New York, compared with 94.89 yesterday. It was the biggest intraday advance since March 19. The yen appreciated 3.4 percent to 127.89 per euro from 132.13, earlier climbing to 127.62, the strongest since May 18. The euro decreased 0.6 percent to $1.3837 from $1.3924.

The yen typically rises during times of financial turmoil because Japan’s trade surplus means the nation doesn’t have to rely on overseas lenders.

Yen Versus Aussie

Japan’s currency climbed as much as 4.6 percent to 71.60 versus the Australian dollar, the strongest level since May 18, and appreciated as much as 3.3 percent to 57.40 against the New Zealand dollar, the strongest since May 21, on speculation the weak U.S. earnings outlook and a drop in stocks will reduce demand for higher-yielding assets. The Bank of Japan’s target lending rate of 0.1 percent compares with 3 percent in Australia and 2.5 percent in New Zealand.

Alcoa Inc. starts the U.S. earnings season today as the first company in the Dow Jones Industrial Average to report results for the three months through June. Aggregate profit for companies in the Standard & Poor’s 500 Index probably declined 34 percent from a year earlier during the period, according to analyst estimates compiled by Bloomberg.

The yen advanced 4.6 percent against the dollar in the past month, compared with the New Zealand currency’s 1 percent increase and the pound’s 0.2 percent gain.

The Australian dollar dropped 1.5 percent to 74.89 yen yesterday in New York, below an upward trendline tracking its 29 percent rally since the beginning of February.

http://www.bloomberg.com/apps/news?pid=20601083&sid=aZ.pPqq9G8Gs

Chew before you swallow boys, you're likely to choke.

 

Yes. The setup was pretty damn good with little support backing it.

This isn't a "world's going to end" move. The Yen's very volatile.

 

I think it's pretty obvious who the fool is, mate. The same guy who said he'd never post here again.

 

Right. Like the liquidity ANY market maker can provide could actually make a dent in the foreign exchange market.

Are you "increasenow"?

There's nothing simple about a flight to quality.

 

Pretty immature for a moderator to be saying things like that imo

Guess that's why you moderate and pretend to be a trader

 

Ah, so you can be immature? Wasn't it your comment that was insulting everyone first?

 

Look at the bond and the 10 year. Now what will happen to ES? It is not going down as much as it should. Yet.