Once again, this looks a lot like an intervention by the Bank of Japan.
They chose to strike this time just after the United States shut down. I wonder if they are aware that this actually makes them look very weak.
Of course, you get what you pay for at this time of day. But it is unseemly for one of the world’s largest central banks to focus so much on the penny economy.
For those unfamiliar with the foreign exchange market, the only place open currently is New Zealand. There are some laggards in the US, but most of the liquidity has dried up. It collapses once the UK markets are closed for the day (this was a few hours ago), but once the US is done it shakes up until Tokyo arrives. Sure, New Zealand and then Australia are active, but they are tiny centers in the scheme of things. Yes, the robots are still there, but without interbank liquidity, it’s extremely thin right now.
This article was written by Eamonn Sheridan at www.forexlive.com.
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