Quote:
Originally Posted by ppp
What's the consensus in the forum? Will the Bank of Japan intervene or do they have too many problems of there own to step into the market?
A new rumor is floating around the market that a number of central banks are going to team up to support the dollar. This would be the first time in 13 years that something of this magnitude was attempted.
If this is true, today would be the best time. We are looking at renewed problems in the financial markets, talk of a Bear Stearns cash problem (and possible collapse if they can't salvage the value of their assets), and the dollar is at record lows against the euro and swiss franc (USDCHF is at parity!!).
And with USDJPY at 100, a dollar rescue could send the pair soaring. I am still bearish, but I am not in the market until its clear a rescue won't happen and the Fed passes or there is an announced worldwide dollar bid from the CBs.
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stated earlier that the target is 95-96 for Doppy and I stick to it for now. Everything appears to be intact and AT made a great calculation for the short at around the 101+ level.
Technically we have yet another -&S that is now in play. Not so uncommon these days to see them work and not fake. The evidence is there to support the argument.
But I ask myself this question continually:
What motive does the BOJ have to intervene? They would be fighting the rest of the world who are dumping their $s including the USA.
It is financial suicide ATM to fight the trend and it has been for quite sometime now.
I would not be surprized however to see another signal short when the target is reached for more downside action. But I am looking for some consolidation when it gets there and I will be looking for reluctance to buy $ to confirm.
It is obvious that the US is using the $ and weakening it to compensate for Yuan strength and the balance of payments. They are determined in that respect and we know that it is not the first time in history the the US will 'cut off it's nose to spite it's face'.
History repeats itself.
However I think the chance of intervention is a dream as the CBs are clearly supporting and driving this move to curb Chinese financial power. Actions speak louder than words.