BoJ seems to be directly targeting USDJPY for intervention and ignoring other currencies (which surprises me as I thought they would target EURJPY). I have observed NZDJPY has been sold consistently from ~84.8 for the last while, which is incidentally where I managed to enter for this "monthly period" in one of my portfolios (FX carry/momentum). My worry is that what comes next with the JPY is largely unknown, and any profits which I might get paid for selling the JPY are going to be denominated in such. As the account is only lightly leveraged on most trades, I have already taken a significant hit on profits from JPY devaluation since the intervention began.
I already knocked the CHF out of my FX universe in 2011, am I going to have to take the JPY out as well on fears of serious market structure issues?
If there is a marketwide risk off move where momentum and carry are taken out behind the shed to be shot, will JPY be a risk off or risk on currency at this point?
I do not like this and am settling all my FX positions for the short term (about 15% of total equity) until I can decide what's what. This will be only the second time since I've overriden the system.
I already knocked the CHF out of my FX universe in 2011, am I going to have to take the JPY out as well on fears of serious market structure issues?
If there is a marketwide risk off move where momentum and carry are taken out behind the shed to be shot, will JPY be a risk off or risk on currency at this point?
I do not like this and am settling all my FX positions for the short term (about 15% of total equity) until I can decide what's what. This will be only the second time since I've overriden the system.