Market Timing : USDX Vs. GBPJPY Cross Rates
| 31 October 2011
Supporting Video: http://youtu.be/ZpTRzPDEUTk
With the GBPJPY - Pound vs. Yen Cross Rate
The unilateral intervention by the Bank of Japan could never have been timed better from their previous market interventions.
The trading culture of Asian traders/strategist particularly the Bank of Japan has been known for their intervention skills of timing the market participants at the least expected time. Although, there is no real pattern that can be pin-pointed as to when such actions would be done, it is merely based on speculation as other traders would. However, with the length of trading experience these could be narrowed down with the kind of market behavior and price movement that currency pairs shows.
With that said, the GBPJPY was amongst the least expected cross rate pairs to move in closest line and correlation with the Japanese Yen. And obviously was not in the radars or market limelight during this time. This is simultaneously traded with the EURGBP cross rate as a cross trade from our long position as of the Oct 10 market view analysis. By following the sequential market analysis from October 10 to the 31th would provide a better understanding of our trade outlook and strategies applied.
