Rules to live by:
- Don’t tug on Superman’s cape
- Don’t spit into the wind
- Don’t be the only buyer of USD/JPY on a day when all your doing is providing liquidity to the market at favorable rates…
The BOJ seems to have abandoned USD/JPY for the time being after earlier buying some at the 84.75 level. With the market one-sided, they seem to be saying it is better to keep some powder dry than to try and halt a runaway train, to mangle several metaphors.
The smarter play for the BOJ at this point would be to let the market sell itself out before returning to the bid….
USD/JPY has been as low as 84.41.