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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Meatballs's picture

Reset, Bitchez!


Eireann go Brach's picture

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

Papasmurf's picture

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

One World Mafia's picture

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

Orly's picture

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




mt paul's picture

stir fried


Dr. Engali's picture

Stolper .....muppet slayer extraordinaire.

A Lunatic's picture

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


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

ClassicCommodity's picture

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

samcontrol's picture

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

chump666's picture

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

It's a brutal world.

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.


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. 

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.

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?

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

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).


FiatFapper's picture

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

Orly's picture

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

Ooops!  (He musta mis-spoke...)


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.

Bobportlandor's picture

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

El Hosel's picture

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

partimer1's picture

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

Water Is Wet's picture


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.

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."



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.

rp1's picture

What an idiot.  Expect nothing from Japan.

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. 

jballz's picture



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.

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

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.

100pcDredge's picture

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

El Hosel's picture

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

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

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...

r3phl0x's picture


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