Might bounce this week, but IMO likely to be short term. Currencies tend to trend strongly once they break:-
I saw some Japan equities analyst on CNBC Asia saying that the downturn in Japan equities as well the NASDAQ was related to the end of the carry trade. Of course it's like chicken and the egg scenario. If its true then Yen will continue to strengthen until the NASDAQ stops falling. It doesn't look good tonight Nikkei opens down 7%. So that's -12% in 3 days. N225 must be tied to carry trade as well. It took the NASDAQ 4 weeks to fall 12% and it took N225 3 days.
Yup, why I posted monthly as well as the daily, and said might bounce likely to be short term. But as everyone knows by now that didn't happen - sliced right thru possible support.
(CNBC) Asia rebound Japanese stocks rebounded strongly on Tuesday after a historic drop, with the Nikkei 225 and Topix index gaining as much as 10%. The yen weakened 0.86% to trade at 145.27 against the dollar supporting export-oriented sectors. Honda and chipmaker Renesas Electronics jumped 13.5% and 17.5% respectively. Other Asia-Pacific markets also followed suit, recovering from recession fears triggered by weak U.S. jobs data. South Korea’s Kospi jumped 3.3% and Australia’s S&P/ASX 200 was up 0.5%. Hong Kong's Hang Seng index slipped 0.2%, while mainland China’s CSI 300 dipped 0.2%. + + + As I mentioned a couple of weeks ago, all things being equal, a weaker currency is better for export-driven economies. BOJ didn't like it weakening too much and too fast, but they certainly don't want the opposite happening either.
Well, if someone on TV says it's over, who cares what the actual interest rate differential is between the two countries. /sarcasm I'm not saying I know what it's going to do this week, but absent a policy change, I would not claim anything is over. The media is always selling something.