The Japanese Yen carry trade is always a topic of interest. Whenever the Yen strengthens, people get all panicky and shriek in horror, worrying about apocalyptic downward moves in the NIKKEI. Well, considering the NIKKEI was off 900+ last night and another 600+ tonight, I think it’s fair to say the Japanese market has crashed.
Look at the action in the usd/jpy cross over the past 8 days. Stunning.
Japanese bonds are now negative yielding, all the way to 10 yr durations.
This is extremely disconcerting for people who hoped the Bank of Japan’s actions would spur some buying interest in Japanese equities. The exact opposite has occurred. Yen has soared, bonds have soared and equities have literally crashed.
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YEN ok. YELLEN as long as she doesnt strengthen leaving the ironman jumpsuit at home
anything the grandma does, with the exception of QE, will be bearish,
this has been a controlled decent and manipulated purposeful devaluation of the market,
they fed is basically telling us the markets are overvalued,
its been well orchestrated, killing both bears and bulls alike