#BOJ Send #USDJPY Back Lower in Asia Session

Speculative trades throws-in the towel as BOJ opts out (for now) on adding further stimulus package sending a rapid decline with the USDJPY back towards the 108.74 low from the same rapid action marking a high @111.76. While late traders react on a pullback from early session lows. This is the first (1st) signal & a confirmation for a follow through is in the making. Of course, only when after the fact will the price and market call can be validated. 

Watching price action today heading towards Friday's closing week price levels. Follow us on our next topic in choosing the best Cross Rates

@TheCCYCorner by Megatrade101.com

BOJ Surprise Move Ripples Across the Board

It was the BOJ move of buying additional ETFs to expand their asset purchases that moved the Nikkei 225 Average towards the 19900 & for the USDJPY @123.55 before retreating quickly lower. A whipsaw where volatility on the last trading day for the week was a total surprise for the market. This move has affected all cross rates related to the Japanese Yen which saw traders frantic on what the next price swing would be made in the US market.

The Bank of Japan's massive stimulus target still remains, while expanding the types of assets it purchases to increase the probability that they meet their target objectives. Utilizing the ETFs is becoming more sophisticated for BOJ in companies that are investing in physical and human capital is an amazing new approach for us to hear from the BOJ out of the traditional forms. Besides, buying another ¥300 billion ($2.45 billion) of exchange-traded equity funds, in addition to the ¥3 trillion in ETFs it has purchased since late 2014 is really a surprise for the market.

USDJPY OVERLAY JPN225 ON THE BOJ SURPRISE MOVE

What is a 'Variable Ratio-Risk Analysis vs. Event Driven Risk Analysis for an investor?

First we do need to define what a'Variable Ratio-Risk Analysis (VRRA) mean to an investor. The VRRA as we termed it is the study of price changes similar to Price Action analysis, but goes deeper to the understanding of the statistical relationship among variables that make up the building blocks of the investors asset exposure.

The investor's portfolio either in Foreign exchange or related financial instruments that has in some form or another is influenced by global market conditions.in  prices. This also includes certain currency hedges that can be structured to control the total amount in currency holdings, stocks, treasuries, interest rates and other forms of instruments affecting the price fluctuation..

Please take note that there at least 5 Event Driven Risks for this week's trading activity.

VRA vs. EDR Analysis