Japan

  • BoJ injects 800 billion yen-

    Today, the GBP/JPY continued its strong movements with a 375 pip drop. Starting the day at a high of 229.09, it began its descent to the lowest point at 225.32. News that the Bank of Japan injected 800 billion yen into the financial system was the reason. It nearly erased this drop in two hours with a 300 pip upward movement. It has since traded at 226 on anticipation of the interest rate announcement tomorrow.

  • GBP/JPY closes out the entire week- Every day this week, the GBP/JPY dominated the currency markets in largest movements. The only difference today was that it moved up instead of down. Hitting a low of 219.27 early in the day, the pair soon began its near 1000 pip movement. News that the Fed decreased its discount rate started the reaction. Confidence was restored in investors viewing the move as the Fed’s management of recessionary risk. They moved the DOW up more than 200 points. With that, traders could stomach risk a bit more reversing the losses in the GBP/JPY pair.
  • GBP/JPY for the third-

    For the fifth straight day, the GBP/JPY has made the largest moves of the major pairs. Today’s movement was only a little over 200 pips. I say only because after hitting its peak on Saturday at 243.97, it’s dropped more than 1000 pips. The pair hit its lowest point today at 231.66 after weaker economic data was released in Britain. Recent downturns in financial markets at the hands of the credit crisis also played were a factor.

  • GBP/JPY for the second time in a row-

    For the second day in a row, today’s money maker was the GBP/JPY. After the pair dropped by more than 300 points this past weekend, it continued the trend. This morning’s weaker than expected inflation data in Great Britain can be partly attributed to this. A softer economic picture pushes down expectations of another BoE rate hike further down. The GBP/JPY started the day at a high of 237.43.

  • GBP/JPY...again-

    The largest movement for the second day in a row was the GBP/JPY. The pair erased yesterday’s 400 pip gain by crashing down on news that BNP Paribas froze three investment funds with positions in US subprime mortgages. France’s largest bank prevented withdrawals after claming it couldn’t fairly value investors’ holdings.

  • GBP/JPY...again-

    The largest movement for the second day in a row was the GBP/JPY. The pair erased yesterday’s 400 pip gain by crashing down on news that BNP Paribas froze three investment funds with positions in US subprime mortgages. France’s largest bank prevented withdrawals after claming it couldn’t fairly value investors’ holdings.

  • GBP/JPY- The GBP/JPY made a 400+ pip movement in the wake of a BOE inflation report released early today. Record oil costs and rising food prices pushed the inflation above the Bank’s comfort zone. Ahead of the release, the pair traded at its lowest point of the day at 239.83.  In nearly nine hours, the pair bounced 400 points upward to its highest point of 244.01

  • AUD/JPY-

    With eyes glued to the Fed’s rate decision and subsequent press release , Australia’s interest rate announcement didn’t get enough attention. As I recommended yesterday, the AUD/JPY proved a great opportunity; one of the best of the past 24 hours.

  • AUD/JPY-

    With eyes glued to the Fed’s rate decision and subsequent press release , Australia’s interest rate announcement didn’t get enough attention. As I recommended yesterday, the AUD/JPY proved a great opportunity; one of the best of the past 24 hours.

  • EUR/JPY- Today’s money maker was the EUR/JPY pair. Starting the day at a low of 161.54, it hit a high of 163.48 a few minutes past 12PM (ET) marking almost a two hundred pip movement. The ECB’s Trichet gave the euro some strength by pledging “strong vigilance” toward inflation this morning. After leaving the 4% rate untouched today, markets interpreted his comments as signal for a rate increase at the central bank’s next meeting. It’s important to watch whether this pair’s momentum will continue with an upward trend toward last week’s levels.
  • CAD/JPY- Today’s uncertain markets provided a lot of opportunities for traders. One of the best proved to be the CAD/JPY pair with close to a 300 pip movement. Overlooking the potential for a volatile yen due to more risk-aversion, traders were buying the pair closely related to oil. With oil hitting its one-year high above $78, economists question whether supplies can match the surging demand. Today’s US crude oil inventories decreased by 6.5 million. The pair’s lowest level was at 109.93 early morning and now it is trading at its highest point of 112.70.
  • The carry trade looks good again- Gaining nearly 200 pips, the pair to trade today was the EUR/JPY. It marked a reversal in the unwinding carry trade of the past week. A few factors are responsible. This weekend’s voting results showed the prime minister’s party lost a majority in the upper house election for Japan. Also, interest rate futures have shifted to expectations toward a pause during the central bank’s August meeting. Weaker economic data is responsible for this. And if world financial markets keep with less volatility, this trend may continue.