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Yen Soars Following Econ Minister Comments That It Has Corrected In Line With Fundamentals

Tyler Durden's picture





 

And just like that the Abe Yen "open-ended" devaluation is gone as soon as it came. About an hour ago the USDJPY proceed to plunge, first slowly and then very fast, following remarks from Japanese Economics Minister Akira Amari who said that excessive yen weakness could have a negative impact on people's livelihoods through rises in prices of imports, and that it has corrected to a level in line with fundamentals. Almost immediately the USDJPY slid 100 pips to a low of 88.62 yen in the wake of Amari's comments, and last stood at 88.96 yen, down 0.7 percent from late U.S. trade on Monday. As for giant "splatting" noise heard around that world, that was every Goldman senior banker slapping themselves on the forehead as effectively one comments ended the carefully built up tension leading to over 1000 pips in Yen devaluation on fears of unlimited easing without any actual intervention, and just promises, combined the best of what both the Fed and the ECB have done. Of course, each day that passes bring draws closer to some actual action out of the BOJ, and a day when the Yen slide with impunity based solely on fears of intervention, finally ends.

And speaking of Goldman bankers, prior to this news it was reported that the new, old PM Abe would meet with Yale Professor Emeritus Koichi Hamada and other academics today for lunch, and would consult on who should succeed Masaaki Shirakawa as head of the BOJ. For the sake of endless paper devaluation everywhere, and subsequent repatriation of gold by every central bank, it better be a Goldman banker (think Mark Carney).

Because only with the unlimited hubris that a central bank collective run entirely by Goldman alumni, can and will the final reset be dramatically accelerated.

 


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Mon, 01/14/2013 - 23:53 | Link to Comment Meatballs
Meatballs's picture

Reset, Bitchez!

 

Tue, 01/15/2013 - 00:11 | Link to Comment I think I need ...
I think I need to buy a gun's picture

its all japans fault

Tue, 01/15/2013 - 00:54 | Link to Comment Xibalba
Xibalba's picture

Tenno Heika Banzai!!!!

Tue, 01/15/2013 - 00:34 | Link to Comment Eireann go Brach
Eireann go Brach's picture

Why can't I buy beer and blow with food stamps?

Tue, 01/15/2013 - 10:08 | Link to Comment Papasmurf
Papasmurf's picture

You can, but you must consume it in the strip club. 

Tue, 01/15/2013 - 01:24 | Link to Comment One World Mafia
One World Mafia's picture

They wouldn't be going back and forth like that to manipulate the markets or anything right?

Tue, 01/15/2013 - 02:58 | Link to Comment Orly
Orly's picture

We'll get the real story on their meeting later in the month...

:D

 

Ka-ching.

Mon, 01/14/2013 - 23:53 | Link to Comment mt paul
mt paul's picture

stir fried

economics 

Mon, 01/14/2013 - 23:56 | Link to Comment Dr. Engali
Dr. Engali's picture

Stolper .....muppet slayer extraordinaire.

Mon, 01/14/2013 - 23:55 | Link to Comment A Lunatic
A Lunatic's picture

Fundamentals, Unicorns, whatever works..........

Mon, 01/14/2013 - 23:58 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

The Germans want their real money back......the Japanese are stick fukking around with the paper ponzi. Good luck with that. 

Tue, 01/15/2013 - 01:34 | Link to Comment ClassicCommodity
ClassicCommodity's picture

Makes me wonder what happens when the Japanese start asking for Gold like the Germans are.

Tue, 01/15/2013 - 07:52 | Link to Comment samcontrol
samcontrol's picture

The Germans now copying Chavez , chapter not closed on this one.

Mon, 01/14/2013 - 23:59 | Link to Comment chump666
chump666's picture

He just took out the Japanese FX housewife traders in one go. 

It's a brutal world.

Mon, 01/14/2013 - 23:59 | Link to Comment Number 156
Number 156's picture

 

Because only with the unlimited hubris that a central bank collective run entirely by Goldman alumni, can and will the final reset be dramatically accelerated.

The race to debase however will continue.

 

Tue, 01/15/2013 - 00:06 | Link to Comment zorba THE GREEK
zorba THE GREEK's picture

It never ceases to amaze me how any semi-relavent spokesperson can affect a market

as large as the FX with just a generalized statement of policy. Some day, soon I hope,

the markets will overlook the BS of public servants and price according to reality. 

Tue, 01/15/2013 - 00:44 | Link to Comment chump666
chump666's picture

It was a flush out of short positions, probably the Ms Watanbes and the like carry trading en masse.  AUD, CAD and NZD are all overbought, which is because of USD and JPY weakness.  The point is, an 'official' from one all of those countries may have made a call to slow down the YEN killing.  Also South Korea is pissed on the KRW being bought over the YEN peg.  Currency wars lead to trade wars, trade wars lead to geopolitical tensions and/or war. These guys are playing a very dangerous game.  Abe's YEN devaluation trade and stock market juice is temporary, once tensions go hot between China and Japan, stocks will slide, YEN will be bought as will Japanese bonds. 

Could be his art of war to get Japan bid, who knows, the f*cker is running out of options.

Tue, 01/15/2013 - 01:38 | Link to Comment ReactionToClose...
ReactionToClosedMinds's picture

agree     probably PRChina and their new found friends ROK on a joint call to Abe

went something like this :  "Yo Bro' ...what the shit are you doing?

Tue, 01/15/2013 - 02:16 | Link to Comment PaperWillBurn
PaperWillBurn's picture

an unexpected devaluation works better than a suspected one. "We're really not going to kill the Yen" Translation = They're sharpening the knife for a quick and hard devaluation

Tue, 01/15/2013 - 10:35 | Link to Comment hooligan2009
hooligan2009's picture

least we still have "open markets", choice price any volume (not least because there has been so much fodder, er money, printed over the last ten years. lots of liquidity if currencies worth about as much as sea water.

i am the opposite side of you for the yen..its descent is only slowed by the "dirtiness" of Europe the US (and that bit player, cable).

 

Tue, 01/15/2013 - 00:09 | Link to Comment FiatFapper
FiatFapper's picture

USDJPY forming spinning top on weekly; gotta sucker the sellers for the continution to infinity and beyond.

Tue, 01/15/2013 - 03:13 | Link to Comment Orly
Orly's picture

Yepperz.  Then they go, "Oh, look!  We found half a trillion dollars to buy USTs and foreign bonds with!"

http://www.forexlive.com/blog/2013/01/14/bloomberg-article-abe-aids-bernanke-as-japan-seen-buying-558-billion-foreign-debt/

Ooops!  (He musta mis-spoke...)

:D

Tue, 01/15/2013 - 00:12 | Link to Comment sitenine
sitenine's picture

Is it just me, or does anyone else smell that? Yes, that's what I thought - there's a damned flock of black swans shitting on the proverbial financial fan. So, can we assume that "coordinated action" has failed? Because NONE of this shit is looking very coordinated anymore. Germans asking for gold, French invading Mali (where the fuck is Mali?), China ratcheting up rhetoric against Japan. Hey, at least the Middle East is peaceful. Oh, wait. Right. I hope you got yourself a nice big sturdy umbrella, because some of this shit is bound to land on or near you in very short order.

Tue, 01/15/2013 - 00:30 | Link to Comment Bobportlandor
Bobportlandor's picture

You've herd of him Mali O'Sullivan he lives in Ireland

Tue, 01/15/2013 - 15:01 | Link to Comment El Hosel
El Hosel's picture

Pass the Teflon and move along.... Nothing to see regarding those blackbirds.

Tue, 01/15/2013 - 01:08 | Link to Comment partimer1
partimer1's picture

Sooner or later someone with deep pocket will get hurt really bad with this algo trading.

Tue, 01/15/2013 - 01:15 | Link to Comment Water Is Wet
Water Is Wet's picture

@Tyler,

Could you do a summary article of the Bernank's tweetfest today?  I know he got heckled a lot.  Don't know what format it was or if he answered any relevant questions.  Didn't have time.

Tue, 01/15/2013 - 03:41 | Link to Comment Orly
Orly's picture

That was easily the most hilarious yet saddest thing I've ever seen in my life,

Tyler got in a question.  "Dr. Bernanke, can I get Kevin Henry's vacation schedule for 2013?  Thanks."

Classic.

:/

Tue, 01/15/2013 - 01:37 | Link to Comment adr
adr's picture

Well there goes my extra 10% margin I had buying components from Japan for a week.

WTF, normal perfectly explainable moves right.

Remember when it used to take years for things to move a couple percentage points.

Tue, 01/15/2013 - 02:54 | Link to Comment rp1
rp1's picture

What an idiot.  Expect nothing from Japan.

Tue, 01/15/2013 - 05:21 | Link to Comment Itch
Itch's picture

This was probably done on purpose, because the growing consensus was that even if the BOJ fractionally disappointed then the Yen was going to the moon in under 2 minutes. Now, if we sell off a little more, the BOJ can mildly disappoint and the market will not be as clear-cut in its reaction. In a nutshell he has let some steam out of the bag without having to bust it. And if correct, it also means that the BOJ intends on doing next to sweet FA. 

Tue, 01/15/2013 - 06:03 | Link to Comment jballz
jballz's picture

"soars"?

 

Jesus fuck man no need for drama. Recovered all of two days losses... not soar unless that is like sore soar more moar. Chart still looks like shit.

Tue, 01/15/2013 - 06:22 | Link to Comment edmondantes
edmondantes's picture

what are they going to do? raise rates?  lol   what happens if the yen keeps going down despite these comments?  won't that be rather bad news?  if the currency starts declining and they lose control of the narrative then the JGB mkt will follow... then they will be bankrupt very very quickly

Thu, 01/17/2013 - 18:25 | Link to Comment hooligan2009
hooligan2009's picture

rest assured, this is a "race to debase" and Japan has a very light jockey on a very strong sprinter with lots of stamina. The yen jockey will outpace the dollar jockey (who is learning how to succeed in this particular race). The Euro jockey is trying to withdraw.

the euro and the yen may be losing the "race to lower output" but the euro at least in the race for a solid base on this front.

euro yen is going to 145..dollar yen..doesn't have to move much at all..right now the story is the dollar and the yen are Screwed, so is sterling..

major basket trade is long looney, euro, oz and scandis and short yen, greenback and pound.

Tue, 01/15/2013 - 07:57 | Link to Comment 100pcDredge
100pcDredge's picture

YES! Corrected to a level in line with fundamentals - and very fast indeed. It's magick.

Tue, 01/15/2013 - 14:58 | Link to Comment El Hosel
El Hosel's picture

Yes, corrected to a level where Japan quickly is losing favor amongst its Ponzi Peers.

Tue, 01/15/2013 - 11:34 | Link to Comment hooligan2009
hooligan2009's picture

gold to hit 2500 in the next 3 months if germany takes its gold back...all the gold repo, lending, rehypothecation, (fed gold truned 30x) will have to be unwound..position for a blow off top then..we'll see...check out platinum..needs less to get to a trillion bucks now! heh

Tue, 01/15/2013 - 18:09 | Link to Comment Catflappo
Catflappo's picture

Corrected -and correcting - to a level where Mr Abe will get his desired 2% inflation target, and possibly lots more, in double quick time...

Wed, 01/16/2013 - 01:50 | Link to Comment r3phl0x
r3phl0x's picture

PERFORMANCE OF NON-DISCRETIONARY RETAIL FOREX CUSTOMER ACCOUNTS AT OANDA

Q1/2012: 23,747 accounts, 39.8% profitable, 60.2% not profitable

Q2/2012: 23,643 accounts, 36.2% profitable, 63.8% not profitable

Q3/2012: 22,814 accounts, 38.1% profitable, 61.9% not profitable

Q4/2012: 21,704 accounts, 40.5% profitable, 59.5% not profitable

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

 

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