Earlier today, the Bank of Japan unexpectedly intervened in the rise of the Japanese Yen, essentially pulling out all of its big guns, which sent the Japanese Yen, against all of its major crosses, lower. Though an intervention had generally been speculated about and anticipated over the past several weeks some OpenBook traders were caught by surprise. But not OpenBook trader mcmkiama08, who held two open longs in the USD/JPY and EUR/JPY pairs which returned nearly 40% and 39%, respectively. Trader siffan also benefited from the central bank’s move, closing out nine longs in the USD/JPY with an average return of 27%; a newcomer to OpenBook, this trader is on the way to posting a 65% return for the week and 44.3% for the month.
Among the OpenBook gurus, robepu closed out a long in the EUR/JPY pair, which gave him a gain of more than 27% and is sitting on another long which is currently at break-even. Guru Piethein is sitting on USD/JPY open long position which is already returning almost 27%. As of this writing, sentiment on the USD/JPY is primarily bearish, with traders anticipating that the Yen’s weakening will have run its course.
Recently, the Japanese government reported that the economy contracted 2.3% in the 4th quarter of 2011 on an annualized basis, below expectations. Earlier today, the Japanese Ministry of Economy, Trade and Industry reported that January’s industrial production fell to 3.8% on a month over month basis, below the 4.0% forecast. The Bank of Japan said that they would “pursue powerful monetary easing” and will do it through holding interest rates at the current near zero levels and setting an inflation goal of maximum 2% for the medium to long term and an immediate goal of 1%. Further, they will increase by 10 trillion Yen its program of asset purchases with the new aggregate amount 65 trillion Japanese Yen.
Among the OpenBook gurus, robepu closed out a long in the EUR/JPY pair, which gave him a gain of more than 27% and is sitting on another long which is currently at break-even. Guru Piethein is sitting on USD/JPY open long position which is already returning almost 27%. As of this writing, sentiment on the USD/JPY is primarily bearish, with traders anticipating that the Yen’s weakening will have run its course.
Recently, the Japanese government reported that the economy contracted 2.3% in the 4th quarter of 2011 on an annualized basis, below expectations. Earlier today, the Japanese Ministry of Economy, Trade and Industry reported that January’s industrial production fell to 3.8% on a month over month basis, below the 4.0% forecast. The Bank of Japan said that they would “pursue powerful monetary easing” and will do it through holding interest rates at the current near zero levels and setting an inflation goal of maximum 2% for the medium to long term and an immediate goal of 1%. Further, they will increase by 10 trillion Yen its program of asset purchases with the new aggregate amount 65 trillion Japanese Yen.
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