No Real Surprises from BoJ, but Yen Bears Aren’t Complaining
(eToro Blog) Though it was widely expected given the Bank of Japan’s stance against a too-strong Yen, the bank’s announcement of additional easing still gave some Yen bears a reason to celebrate. In general, markets were certain that the BoJ would announce more easing; what was missing were the specifics of that plan, and in that the central bank managed to offer a few surprises which were enough to give the Yen a little push lower.
Currently, the USD/JPY pair are trading is trading lower at 80.6780, off the day’s high of 81.4035, which followed the BoJ announcement. Likewise the EUR/JPY is trading at 106.6865, down from the session high of 107.4860. OpenBook sentiment on both pairs is predominantly bullish.
OpenBook trader oniolara from Spain, who has 23 followers and 7 copiers as of this writing, scalped a small profit of 2.33% in a long position in the USD/JPY pair a short time ago, and he’s done the same thing nearly every day this week, with profits of 1.36%, 5.53%, 2.08%. In fact, this trader’s 14.3% holdings in the pair has provided him with a 3.8% gain over the last six months, in percentile gains second only to his holdings in the AUD/USD. His P&L over the last six months was a loss of 31%, but his stats have improved significantly with quarterly profits reported at 170.5%, and monthly at 18.7%.
Guru Robepu, among the favorites on OpenBook with 1295 copiers, allocates nearly 25% of his portfolio to the EUR/JPY pair, the most among the several pairs that he successfully trades. Earlier today this guru closed a long position with a 39% gain, which was only hours after another long was profitably closed with a 28% return. While a recently opened long is still in the red, as are quite a few longs opened earlier in the month, given the Bank of Japan’s commitment it’s doubtful it will take too long to turn green.
The Japanese central bank said that asset purchases would be increased by ¥10 trillion, which some analysts say shows the bank’s resolve to achieving its 1% target for inflation. At the same time the bank announced it was reducing its funding for fixed-rate operations to ¥30 trillion. The net result, however, is that the combined programs were increased to ¥70 trillion from ¥65 trillion. One surprise was that the bank said they would increase their purchases of ETFs and trust fund investments in property.
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