Japan's "PCE Day" Intervention Strategy

82
Take a close look at the daily chart of USDJPY.
The massive red candles on April 30 and July 30 highlights a clear, tactical correlation.

  • The Action: Sharp Japanese Yen-buying interventions to suppress a runaway USDJPY exchange rate.
  • The Funding: Tokyo funding the operation by bulk-purchasing JPY and dumping U.S. Treasuries.
  • The Timing: Both instances landed exactly on days when the U.S. Bureau of Economic Analysis (BEA) dropped its PCE inflation data.


The Bottom Line:
It could not be just a coincidence. Japanese authorities seem to actively weaponize the heavy trading volume and volatility that occurs during U.S. PCE releases to hide or compound their market intervention footprint.

Keep a very close eye on the calendar for upcoming U.S. inflation data drops—they have officially become prime territory for major Yen reversals.

Exención de responsabilidad

La información y las publicaciones no constituyen, ni deben considerarse como, asesoramiento o recomendaciones financieras, de inversión, de trading u otro tipo, proporcionadas o respaldadas por TradingView. Obtenga más información en Condiciones de uso.