How can you not do well? Just sell it! Seriously, 15 BOJ interventions later and still going down. And to think, some people don't believe in trends...
Here is a chart of the Yen going back to 1970. This is the futures which is dollar denominated (Yen over Dollars).
That intervention that they tried when the Yen was at 82 was hilarious. Too bad I did not know about ACD then. I was stuck at 4hr candles or higher before ACD.
perhaps you can explain the correlation to the us equity indexes, I think this is lost on a lot of traders. I wonder myself why the euro and sp500 are so correlated, thanks.
All of our economic growth is coming from inflation. The more inflation we have, the lower our dollar. Japan has had zero economic growth for decades and their currency reflects that. The more money we print, the lower our currency goes. Since stocks have a fixed amount of shares and the supply of dollars that's chasing stocks is increasing, it forces stocks higher. Keep in mind stocks are a spread trade like everything else. It's all relative value. AAPL is priced in dollars. If we price stocks in Gold, equities are sitting near the 2009 lows. Let me put it another way, if you continue to lower the denominator in the equation, the relative value of the numerator goes higher. So when you see a SPY quote, what you are really seeing is a currency trade SPY/USD.
I have to admit after studying these concepts for years the currency pair thing still confuses me, sort of like people talking about bonds, price vs yield. In general traders speak about the prices of bonds not yield. Let's say you are selling hamburgers aka MCD in Japan, when yen is repatriated you are getting less yen per burger, is this correct, I wish I had a more innate understanding of this. I think it is confusing because there is always that "relative value" as you say.
i'm not too bright either,my simple explanation is when the euro is high,they can buy US stocks at a discount 1.4/1....edit..due to it's simplicity,i don't put a lot of creedence into it