USD/JPY, Call Rates V Tona

EUR/USD Vs USD/JPY extremely long term: EUR/USD 1.4656 Vs USD/JPY 106.57.

For USD/JPY, the BOJ says 156.11 and 130.12 and 154.08 to 131.84. The daily numbers presented here may change by 100 ish pips. For example, Monday 155.65 to 129.74.

I created an interest rate model in 2015 /2016 and the model is able to trade every currency and every financial instrument on God’s planet for the vital 7 1/2 hours of trading. To include USD/JPY. From the 7 hour interest rate model came the 24 hour trade. Both models including weekly trades is able to trade multiple longs and shorts.

Drill this vital point in your head. An exchange rate = interest rate and interest rate = exchange rate. Nothing else matters as an exchange rate can’t move without an interest rate and interest rate can’t move without an exchange rate. The BOJ and USD/JPY is the prime example but it applies to every nation’s interest and exchange rates.

The laugh to all this is my models are miles ahead of these central banks interest and exchange rates including the BOJ and USD/JPY but because the BOJ is vastly different than any central bank, I began an inspection to determine what the BOJ was doing.

From the weekly, USD/JPY 143.00’s to 141.00’s Vs actual 143.50 to 140.14.

Tona rates were released at 8:00 PM EST Monday evening Vs the BOJ Fix to USD/JPY and USD/JPY moved higher by 50 pips. Yet Tona wasn’t the trigger to force the move.

The 4 am EST release of the BOJ Call rates is the most vital and profitable trade rates. Tona rates are based on Call rates and are pretty much the exact same rates as Call rates. I term Tona the reinforcement rate.

The BOJ Monday informed this for highs: 143.53, 143.45, 143.44. Today’s Tuesday at 8:00 PM EST, USD/JPY dead stopped at 143.43. Tona informed highs at 143.49 and 143.47.

Lows and highs for Tona and Call rates = 143.53 Vs 141.52. Monday trade = 143.11 to 141.10. The point of note is 201 pip range.

Tona rates are vital due to the longer term view. Call rates = 154.08 to 131.84 Vs Tona 148.22 to 137.05.

USD/JPY 2 pip differential is automatically built into the system by the BOJ Fix as USD/JPY trades 2 pips to JPY/USD and 2 pips to EUR/USD. USD/JPY is the middle currency but most vital to the BOJ and seen in many Economic releases such as the Import / Export Index.

The word of caution to the false promise to profits and movements to US Yields Vs USD/JPY. I have another system to show this in detail.

Today is Tuesday and Wednesday is covered to highs and lows. At 4 am EST, slight adjustments to USD/JPY highs and lows is the only requirement.

Brian Twomey

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