How BOJ Intervention Shows Up on the 6J Chart
When the Bank of Japan intervenes in the currency market, 6J futures react instantly. These aren’t normal moves — they’re vertical, violent, and unmistakable if you know what to look for. Intervention leaves a signature on the chart that no other event can replicate.
1. The Initial Vertical Spike
The first sign is a massive candle that looks completely out of place relative to the rest of the session.
- zero pullback
- straight-line movement
- volume explosion
This isn’t “momentum.” It’s the BOJ slamming billions into the market to defend the yen, usually after extreme USDJPY levels.
2. DOM and Volume Behavior Goes Insane
The DOM thins, then fills, then vanishes — all in seconds. Volume prints blocks far larger than any institutional trader normally uses.
- size appears mid-range instantly
- market orders sweep multiple levels
- algos shut off because the tape breaks correlation
If you’ve studied liquidity void behavior, intervention basically creates the biggest void possible.
3. Correlations Break Immediately
During intervention:
- U.S. yields temporarily stop mattering
- ES/NQ correlations break
- USDJPY disconnects from normal levels
Everything you know from 6J–yield dynamics pauses for a few minutes.
4. The Follow-Through Move Is Always One-Sided
Intervention isn’t subtle. It forces price to move. You’ll see:
- an initial ripping candle
- small retrace (if any)
- a second impulse wave
This two-stage pattern is one of the most reliable signatures of BOJ action.
5. When It Usually Happens
BOJ intervention almost always hits during:
- Tokyo hours
- Tokyo–Singapore overlap
- major USDJPY “line in the sand” levels
These windows align with the volatility behavior outlined in your volatility article.
6. The Warning Signs Before Intervention Hits
Smart desks catch intervention hints early. Here’s what they watch:
- USDJPY approaching historic “danger levels”
- BOJ officials making sudden public comments
- news agencies reporting “BOJ watching FX closely”
- options market pricing huge IV jumps
When these line up, liquidity dries just before the BOJ hits the button.
Final Thoughts
BOJ intervention leaves fingerprints on the 6J chart — violent spikes, broken correlations, extreme volume, and one-direction moves that can’t be mistaken for anything else. If you trade 6J, learn these signals. They’re rare, but when they hit, they move the entire global currency market.