Japan QE and FX trading

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noblehawk

New to FX trading.
Just donot understand that: it takes only 10 minutes for stock traders to response the news, but Japan announced their QE last week, but their currency is keeping falling down for 5 days! Why it took so long to response that news? Is that because the FX market is too huge or too many players? So it need time to pass the effect?

Need advice!!
 
It's not a response to the QE announcement itself. It's a response to a few things that followed, such as the price action in the JGB mkt. Moreover, Monday this week was a Japan holiday, which also meant that the mkt may have been slower to digest and react to the news.
 
noblehawk said:
New to FX trading.
Just donot understand that: it takes only 10 minutes for stock traders to response the news, but Japan announced their QE last week, but their currency is keeping falling down for 5 days! Why it took so long to response that news? Is that because the FX market is too huge or too many players? So it need time to pass the effect?

Need advice!!
More...
Japan QE is bearish for the Yen.
 
Stocks digesting news faster than fx is backwards. There is nothing faster than fx.
As to how long a momentum ignition effect like this takes to taper off, well that's where money is made right ;-)
 
Is that possible? Because QE was a surprise, the first wave from 110-111 is people hurry to buy US$, the second wave from 112-113 is people hurry to short cover. the last wave from 113-114 is people who were late for the news, so they were trying to set the trap to catch the last train?
 
I assume the question is directed to me.
The speed aspect I am certain of. A look through tick data of the two markets will convince you too I'm sure.
As to whether the effect is still on or off... I don't know. I can only bet on it :-)
 
nomoremondays said:
Stocks digesting news faster than fx is backwards. There is nothing faster than fx.
As to how long a momentum ignition effect like this takes to taper off, well that's where money is made right ;-)
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I agree, sit in front of a screen when any announcement is made, fx goes crazy before stock traders can figure out if it is bullish or bearish.

fx has been long USD/JPY for a long long time, since 90 and they are going to stay with it all the way to 130
 
ExperiencedJoe said:
The effect has passed. JPY/EUR and JPY/AUD will rise tomorrow.
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There, like I promised: JPY/EUR has risen today. It will rise again tomorrow, and could be quite a big rise. All those who shorted it will be given a weekend full of serious contemplations and reflections. On monday, it will fall, just when those sleepless shorters buy to cover their shorts.

JPY/AUD is not quite following, yet. But it is on notice to rise, maybe even in the coming asian session.
 
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