JPY at end of trend?

Kan in the US this week, most likely working out a deal with the FED so that Yen can be used as a balancing currency & let Euro take on full heat, back to 1.6? hehe

 

AS, this is key right here, extract from FT:

"As Japan’s authorities are acting to weaken rather than strengthen the yen, they can print unlimited amounts of domestic currency to do so. Theoretically, the only constraint they face is the risk of inflation. But with Japan’s economy still in the grip of deflation, the authorities have the ability and the incentive to prevent further gains in the yen. This matters at a time when the Federal Reserve is considering additional quantitative easing – a move that would put downward pressure on the dollar. Japan’s return to the currency markets now means the yen won’t be reflexively favoured by investors turning bearish on the greenback."

 

More intervention reported.

 

Looks to me like MOF Kan and Governer Shirakawa creditability is slipping!

 

Japan’s action on yen sparks fears of political fall-out
by James Phillipps.

http://m.citywire.co.uk/wealth-mana...t/a434488?ref=wealth-manager-latest-news-list

 

Stubbornly long JPY positions in CFTC/COT report - despite BOJ interventions. No trend change in sight - yet.

 

You are correct about the 'yet' part. I've read so much recently about yen & it all either suggests short-mid term bounce providing BOJ keeps on intervening or the other party that suggests that intervening in currency markets won't help long term. I guess I should have pointed out that personally I would like to see a short-mid term turnaround, that's what I see in technicals. So providing BOJ does step in again & again to hold 82 a bounce is very likely to take place to at least 90, I will be happy with that outcome

 

"In contrast, China has been acquiring record amounts of Japanese government debt, buying more than Y1,700bn ($20bn) of short- and long-term paper so far this year. The previous annual record was Y255.7bn in 2005.

Ashraf Laidi, chief market strategist at CMC Markets, says while many interpreted Japan’s recent decision to intervene and sell Y20,00bn to stem gains in the yen as a reaction to dollar weakness, it can be seen as a loud warning shot to Beijing given its record purchases of Japanese government paper.

“Cynics – possibly realists – could reason that China seeks to hamper Japan’s recovery by keeping the yen excessively strong while profiting along the way via accumulating appreciating yen and gradually reducing exposure to depreciating dollars,” he says."

Source FT

 

Barclays's Yamamoto Interview on Japan Yen Intervention

http://www.bloomberg.com/video/62950700/

Wells Fargo's Serebriakov Interview

http://www.bloomberg.com/video/62960970/

FXCM's Kruger on Yen

http://www.bloomberg.com/video/62988390/

Keeley Interview Excerpt

http://www.bloomberg.com/video/62960806/

Argonaut's Gerstenhaber Interview on Yen, Yuan

http://www.bloomberg.com/video/62948612/

 

Nice work JSSPMK :=) How long did it take to assemble all these reports ? :=)

Seems, the Chinese are moving on with their USD devaluation policy.