FOREX TRADERS

[ultimatepick]

Another gem! 300 pip daily range wow!

BoJ have changed their intervention policy just recently. In 1995, when USD/JPY hit the historical bottom at around 79.80 the interventions below 100 (on the way down and then on the way up) were quite frequent. Even concerted ones (joint), when a number of CBs got involved. BoJ used to work as any other speculator and so far they seem to come up with some profits every time they get involved. The contracts that BoJ bought through interventions at below 100 in 1995 they sold back in 1997 starting from around 127.00. Then a new wave of interventions (this time against the USD and in order to support the yen) began in 1998 from 134 and (being relatively unsuccessful in the beginning) continued all the way to the very top at 145. The profits made on those interventions were eventually pocketed at 110-120 trading zone by the end of the same year. That time the "intervention" daily ranges usually were in excess of 250-300 pips. Also that time BoJ didn't care much about damaging the liquidity and sometimes made repetitive attempts to intervene several times a day. The biggest intervention related one day trading range was posted on USD/JPY chart at 10.07.98 reaching over 1100 pips. It was also the time when LTCM hedge fund got burned. Obviously that huge move should partially be attributed to them liquidating USD/JPY longs in response to numerous margin calls they got that day.