Forex

The decline in the USD/JPY finally hit the 100 level today. There are a lot of traders out there, including myself that are now thinking about possible intervention. If it were to happen I think the BoJ would be the most likely culprit versus the Fed or ECB. But timing is an issue when trying to take advantage of something that is by definition unexpected. However, JPY trade data on the 25th and Tankan on the 2nd may be the trigger for such action.

This is certainly not a guarantee of intervention but I think the likelihood is rising every day the USD/JPY hits new lows. Potential "black swans" or unusual market events like this are great opportunities for forex traders will to take some extra risk. In the video I mentioned a 1,000 pip move that happened in a matter of a few weeks following a well remembered intervention in 2004. Planning ahead for that contingency to repeat itself could be worth the effort.