Sure, last print 84.96. As expected. As long as bottom picking is the "play de jour", there will be further JPY strenghtening. BOJ doesn´t care too much, "new" government either. Rhetoric will not help. Well, no problem, selling US Dollars is a pretty simple play in this environment...
Doesn't seem simple to me. Selling USD at this point and buying JPY is like trying to snatch dimes from in front of a steamroller. The reward is tiny and the risk enormous.
Aug. 31 (Bloomberg) -- Japanâs limited policy response yesterday to risks facing economic growth after a surge in the yen may leave the recovery dependent on overseas spending. Bank of Japan Governor Masaaki Shirakawa and his board expanded a bank-loan program by 10 trillion yen ($118 billion) after an emergency meeting in the wake of the yen reaching a 15- year high. Prime Minister Naoto Kan pledged to channel 920 billion yen toward steps aimed at buttressing domestic demand. The measures wonât alter the outlook for growth, which is poised to slow in the second half, according to economists at Goldman Sachs Group Inc. and Sumitomo Mitsui Asset Management Co. Pressure on Japanâs currency to rise may also be sustained after the announcements prompted the yen to rise from its low of the day yesterday against the dollar. âAlthough Japanâs economy will unlikely go into a recession, it may stay in a lull through the first half of next year,â said Hiroaki Muto, a senior economist in Tokyo at Sumitomo Mitsui Asset Management. âJapan needs to cross fingers and rely on overseas demand.â ... Nissan Motor Co., Japanâs third-largest automaker, began selling a Thai-made compact car in July to counter the rising yen. Panasonic Corp., the maker of Viera televisions, said Aug. 20 it will move part of its plasma display panel production to Shanghai. http://noir.bloomberg.com/apps/news?pid=20601087&sid=alu_oRV._Ouw&pos=2 No more comments needed. Bank of Japan wants to strengthen the YEN further and to outsource more jobs into neighbouring countries. There is no doubt about it.