USDJPY Goes Bidless

Tyler Durden's picture

One can only watch this devastation with horror. USDJPY drops to 76. Unbelievable. Many Wall Street FX desks are blowing up right at this moment.

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Concentrated power has always been the enemy of liberty.'s picture

so it's yen to infinity and the dollar gets the big blue swirly.  Does that mean gold catches a better bid?

LowProfile's picture

Actually just the opposite.  http://finance.yahoo.com/news/US-Dollar-Japanese-Yen-Poised-fxcm-1180438...

Short/medium turn, expect PM weakness.

And don't get all pissy about this, it's probably the last best buying opportunity.

Raymond K Hassel's picture

I don't get pissy about anything from yahoo finance.

LowProfile's picture

Oh, I'm sorry.  I didn't realize the source wasn't up to your standards.

Does this make it more acceptable? http://www.dailyfx.com/forex/technical/article/fx_options_forecast/2011/...

Idiot.

d00daa's picture

If you take some time, carefully clean the sand out of that cavernous vagina of yours, you just might, possibly,  find your long lost sense of humor.  Maybe.

LowProfile's picture

Laugh it up.

Hope you planned ahead.

I only kill chickens and wheat's picture

Howdy Col. I've disagreed with some your stuff, but what's with all

the junking. Obviously things are too intense for some people to handle.

let-them-eat-cake's picture

The junks you got will be out of pocket right about now and for the next week or so.

Yancey Ward's picture

"Would you say it's time for our viewers to crack each other's heads open and feast on the goo inside?"

Yancey Ward's picture

The Simpsons comfort me in times of zombie apocalypse.

Id fight Gandhi's picture

Me too

Controlled Nuclear fission is a demanding mistress.

eatthebanksters's picture

Mistresses by nature are out of control...

homersimpson's picture

I offer you a half eaten donut and thank you for your support for all my years at the Nuclear Power Plant. I didn't know so many people wanted to see me in action for so long.

10kby2k's picture

no disrespect homer, but i'm a southpark guy

homersimpson's picture

That wasn't Duff beer I just saw you drink..

kita27's picture

"MELTDOWN is one of those fearful media terms, id like to call it an unrequested fission surplus"

djrichard's picture

I think that's actually happening in Bahrain.

Confucious 222's picture

Only if you came in to this debacle short the Yen.

If you came in short the yen against the dollar with both leverage and size, you have become goo already, yes indeedy.

whatsinaname's picture

I dont give a rats a... about what happens to the Japanese stock market, but a strong Yen ought to be in Japan's long term interest as it will minimize their re-construction costs and even if they see a reduction in export related jobs, they should hopefully see jobs in re-construction. Of course since when did CB's care about a country's LT interests ?

Of course, we continue to bear the brunt of meany beany's mild inflation babble in the US !!

machineh's picture

A strong yen will make energy and cement imports cheaper, but as a major manufacturing nation, Japan can source much of its rebuilding supplies domestically. But the strong yen is like a death ray to exporters. How can Japanese auto manufacturers compete, with the yen at 77 to the dollar? It's a horror show for them and many other exporters.

It seems perverse, that a country which was already deflationary is getting a further unwelcome deflationary jolt via out-of-control currency appreciation. This is the exact opposite of 'inflating your debts away.' Now the debt burden of the world's most indebted country is becoming heavier in real terms, just as it prepares to go on an epic deficit spending spree. No wonder default swaps on Japanese sovereign debt are reflecting higher risk.

The San Francisco earthquake in 1906 proved to be quite deflationary, leading to the Panic of 1907 (which in turn provided the impetus to create the Federal Reserve). One could imagine a similar deflationary impulse in Japan ... but followed by such reckless money printing and deficit spending that it pops interest rates and puts debt service on an exponential path to default, whether the Bank of Japan tries to inflate its way out or not.

It's horrible to contemplate that this natural disaster could be the tipping point which produces the first sovereign debt crisis in a major developed economy. 

 

Amish Hacker's picture

Well put. Imagine becoming the world's third largest economy, even though you had to import most of your energy and raw material inputs. Then an earthquake-tsunami-nuke disaster happens, and the only policy that will let you rebuild (strong yen) will destroy your exporters. This whole mess is starting to have the feel of an unstoppable force meeting an immoveable object.

zebra's picture

is it possible that Japan is at a survival mode that cannot think about exporting at all? all they have to think is to rebuild their infrastructure first. therefore, currency exchange rate will be in their favor if JPY is higher. and that will kill the Nikkie for sure.

dwdollar's picture

Not quite yet.  We need at least one more straw for SHTF territory.  Preferably a black swan event here in the US.

TemporalFlashback's picture

Didn't mean to junk your comment. Apologies.

reading's picture

Just an fyi, you can un-junk by clicking on it again...just in case you go on a junk rampage or your mouse goes wild.

scratch_and_sniff's picture

YES MAN!!! QUICK, GET ALL YOUR GOLD AND HIDE UNDER THE STAIRS!

papaswamp's picture

Someone just stepped in and is defending at the very least 78..maybe 78.20...and they are loosing.

Iam_Silverman's picture

"defending at the very least 78"

BOJ?

Boilermaker's picture

LOL...not unbelievable at all.

John McCloy's picture

Tell us again Tim that Japan will not sell their treasuries.

Dr. No's picture

edit; read the chart wrong.  huh?

Cleanclog's picture

If BOJ buys JGBs (and sells USTs), where will we see our interest rates tomorrow?  Is FED complicit?