Surprising the market – The new hobby of the Japanese - Forex News by FX Leaders

Surprising the market – The new hobby of the Japanese

Posted Wednesday, July 27, 2016 by
Skerdian Meta • 1 min read

We all know that the Japanese have all kind of weird hobbies and fetishes. Right now their favourite hobby is surprising the forex market. Remember yesterday when we heard rumours that the stimulus package would be 6 trillion Yen instead of 20-30 trillion that was first promised? It took the forex market by surprise and USD/JPY fell about 250 pips to 104 from 106.50. 

Today the forex market had another surprise. Kyodo who is the spokesperson for the Japanese Prime Minister said that Abe would announce a 28 trillion Yen stimulus package 13 of which would be on fiscal measures. Again, it was released overnight so we missed it but eventually caught up with old news. USD/JPY rallied to 106.50 overnight but it has retraced and is now about 100 pips lower.

We thought this would be a good opportunity to open a buy forex signal and opened one a few minutes ago. To tell you the truth, I don´t know who is more to blame for these "surprises", the Japanese officials or the forex market itself. Quite often the forex market builds expectations on all sort of stupid ideas and presumptions only to fall on its backside a little later. Well, it takes two to tango so there you go, this is the world of forex. 

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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