JPY Gross Domestic Product

[NickF]

Hi All,

I was reading the news today and I noticed that JPY GDP Annualized actual is 1.7% vs forecast 0.3%.
If I understand anything about GDP, this is a better than expected figure. Now, is this likely to affect the JPY and in which way? I thought if the economy does better, the JPY will strenghten. So I went short on USDJPY (assuming there are no significant changes in USD) a few hours and so far I am down about 50 pip. Does it mean my theory is wrong, or is the market behaving oddly?

Thanks,
Nick

 

[CanOz]

Hi All,

I was reading the news today and I noticed that JPY GDP Annualized actual is 1.7% vs forecast 0.3%.
If I understand anything about GDP, this is a better than expected figure. Now, is this likely to affect the JPY and in which way? I thought if the economy does better, the JPY will strenghten. So I went short on USDJPY (assuming there are no significant changes in USD) a few hours and so far I am down about 50 pip. Does it mean my theory is wrong, or is the market behaving oddly?

Thanks,
Nick

Perhaps traders are expecting the BOJ to weaken the currency, to intervene if it got much stronger, so they sold the currency betting on he intervention....

As a caveat, they could intervene so keep a tight eye on those stops in JPY pairs....although since they've been saying that, the currency has weakened.

 

[NickF]

Perhaps traders are expecting the BOJ to weaken the currency, to intervene if it got much stronger, so they sold the currency betting on he intervention....

As a caveat, they could intervene so keep a tight eye on those stops in JPY pairs....although since they've been saying that, the currency has weakened.

Thanks for explanation. It looks like my guardian angels from FXCM Mirror Trader decided to place a buy on NZDJPY soon after my trade, hedging my short on USDJPY