The coming US dollar crisis Message Board

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Strategies & Market Trends : The coming US dollar crisis

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From: gregor_us	10/24/2008 5:36:56 PM
	2 Recommendations Read Replies (1) of 71407

I believe we are very close to BOJ warpath type action on the JPY. If the JPY continues the move against the USD and in particular against the EUR, the Nikkei will melt every day the JPY advance continues. I expect the BOJ will double load the shotgun, by announcing new quant easing measures, and then putting on the turbo-chargers of some intervention. They are the experts in currency intervention. No one does it better. Amateur nations intervene when the direction is against them. Japan has shown that it can get the JPY to weaken with a big policy announcement, and then they boot it even further with operations. I suspect they let things get a tad out of hand here, just so that they could work with these extreme levels, in their favor, for a reversal. Last night's move in EUR/JPY was extraordinary. I would not be surprised if the BOJ gets into action as early as Sunday night. Nota bene: the BOJ has been preventing a breach of current levels for decades. I see no reason for them to stop now. In short, I hope speculative JPY longs are aware of these risks, and take positions off when you see moves like we saw this week. G

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