Surprising the market – The new hobby of the Japanese
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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