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Yen Surges As Japan's Deputy PM Says Excessive Yen Gain "Corrected"

Tyler Durden's picture


The circus continues. For this evening's entertainment, the countrty Deputy PM Taro Aso explains the "excessive JPY gain has been corrected," upon which USDJPY instantly strengthens 40 pips reversing all the post-US0-close JPY weakness. Of course, the market reaction was evidently enough for him to swallow his words and 'retract' his comments mere moments later. At the same time, the BOJ declares:


While their optimism is welcome, facts (as they often do) stand tall in the face of their rhetoric as Japan's Macro index and manufacturing new orders (to name just two recent data points) do not even show second-derivative green shoots. And for the third and final act of this evening's early debacle, 30Y JGB yields have slammed 9bps higher (as JGB Futures prices look set for another halt).


The Bottom is in?


The Bottom is in?


What happens when Aso opens his mouth...


ruining the 100 target the world had for 2am... (maybe push it back to 3 or 4am)...


and it looks like we are set for another JGB Futures halt as long-dated Japanese bond yields are blowing higher once again...


and 20Y even more volatile...


and just to add to the fun - SGX entire futures exchange down.... Mini JGB's and Nikkei 225 yet to open on


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Mon, 04/08/2013 - 20:30 | Link to Comment Abraxas
Abraxas's picture

Lying bastards, these economists. However, for each one of them, there’s a million out there that listens to and believes them. The average IQ is obviously much lower than previously thought.

Mon, 04/08/2013 - 20:29 | Link to Comment kushmere
kushmere's picture

But of course they lie. They have little else left. Many people woke up when the headlines of "Bank Deposit Confiscation" appeared. Bitcoin grew 400%. More desperate actions are coming.

New Commentary 

Mon, 04/08/2013 - 20:40 | Link to Comment tsx500
tsx500's picture

jfc i'm so confused !

Mon, 04/08/2013 - 21:00 | Link to Comment bania
bania's picture

Looks like that Aso needs to shut his mouth!

Mon, 04/08/2013 - 22:56 | Link to Comment Supernova Born
Supernova Born's picture

Just say nyent. 

Mon, 04/08/2013 - 23:47 | Link to Comment markmotive
markmotive's picture

The Nikkei is still way overbought based on this:

In fact, pretty much everything looks overbought.

Mon, 04/08/2013 - 20:37 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Ying Yang Yen.

Mon, 04/08/2013 - 21:03 | Link to Comment rogeliokh
rogeliokh's picture

I placed few (small) bets against YEN across the board earlier today and win all of them.. All I know, ones you place a huge bet all of the sudden money is gone. Think about it.. If Shorting Yen is 100% sure thing, then why bother to invest in anything? Keep shorting against EUR, USD, GBP, AUD, NZD, you name it.. My feeling is that JPY short trap could be around the corner somewhere.. Nothing can be 100% certain.. Should we loan a house to participate in YEN ("collapse") until like 120 to USD levels are reached? Eventually it could be there, but I think there is few traps on the way up (USDJPY). Freaking bubbles all over the place and GOLD is out of favor in this printing chaos? Gimme a f* break!

Tue, 04/09/2013 - 03:59 | Link to Comment Go Tribe
Go Tribe's picture

They're really lost without an Emperor. Wonder how long it'll be before they fix that?

Mon, 04/08/2013 - 20:29 | Link to Comment Thomas Jefferson
Thomas Jefferson's picture

Looking at mortgage interest rates today.  Looks like a 2% 15 year is within the realm of reason if this continues.

Japan is a sad story.  Thanks for the Japan doom.  It makes the USA look like a shining beacon of hope.  Oh wait.


Mon, 04/08/2013 - 20:31 | Link to Comment ziggy59
ziggy59's picture

Fed's Bernanke sees central banks' QE mutually constructive

May you rot in Hell, Ben

Mon, 04/08/2013 - 22:03 | Link to Comment Jon Bong Jovi
Jon Bong Jovi's picture

I guess if you call a worldwide CB circle jerk mutually constructive. 

Mon, 04/08/2013 - 22:11 | Link to Comment kalum
kalum's picture


Mon, 04/08/2013 - 20:31 | Link to Comment fonzannoon
fonzannoon's picture

So...they are going to halt their stimulus?

Mon, 04/08/2013 - 21:01 | Link to Comment kito
kito's picture

you see fonz....told the contrarian...use the force....told you to buy yen..............

Mon, 04/08/2013 - 21:06 | Link to Comment fonzannoon
fonzannoon's picture

I have had a short yen trade on for a little while now. It's just my pinky toe. Kyle Bass told me to dip it in and go to sleep. You keep waking me up and I think I saw a fin circling around. Also my pinky is bleeding. But I think it will be fine.

The last time I felt this good about a trade the 10yr was around 3% and I was absolutely certain we hit bottom.

Mon, 04/08/2013 - 21:38 | Link to Comment kito
kito's picture

Fonz, I'm telling you, Japan won't escape deflation.....only their stock market will be inflated, until it bursts....and then back to the drawing board....

Mon, 04/08/2013 - 21:45 | Link to Comment fonzannoon
fonzannoon's picture

i totally believe their stock market will burst. I think their currency will not strengthen though. They will get an imploded market, just not the side benefit of falling prices. I think we end up in the same boat.

Mon, 04/08/2013 - 22:11 | Link to Comment kito
kito's picture

fonz, they have had the benefit of falling prices for over 20 years.............

Mon, 04/08/2013 - 22:17 | Link to Comment fonzannoon
fonzannoon's picture

they have. either debts/deficits matter, or they don't. if they do...then the yen is done. or close to it. if they don't...the yen will strengthen. They suspended the laws of gravity for two decades. that makes me shudder. that makes me think the US can suspend them for my entire lifetime.

Mon, 04/08/2013 - 20:31 | Link to Comment q99x2
q99x2's picture

Maybe they should raise the left lever, crank in a counter rotational manner, add two spinkles of toad oil and the mites from an infant bat wing then leave to simmer over night.

Mon, 04/08/2013 - 20:45 | Link to Comment fonzannoon
fonzannoon's picture

"the pump won't work cause the vandals took the handles"

Bob Dylan

Tue, 04/09/2013 - 07:21 | Link to Comment StychoKiller
StychoKiller's picture

Tongue of bat, eye of newt, fillet of a fenny snake -- too many cooks do indeed spoil the broth!

Mon, 04/08/2013 - 20:35 | Link to Comment Major Major Major
Major Major Major's picture

Well, something needs to correct the corrected corrections or we will be in for a real correction.

Mon, 04/08/2013 - 20:37 | Link to Comment SpeakerFTD
SpeakerFTD's picture

Slightly OT, but anyone know what's going on with premiums for junk silver?   A year ago junk was trading at almost no premium over spot, now on Tulving junk silver has the same per oz premium as Eagles.

Mon, 04/08/2013 - 20:44 | Link to Comment tsx500
tsx500's picture

same thing going on at my local coin shop...he's got a very small premium now for the junk, but not as much as Eagles though

Mon, 04/08/2013 - 20:49 | Link to Comment fonzannoon
fonzannoon's picture

who the fk would want to sell physical silver at these levels? I'd rather close my shop and take a vacation.

Mon, 04/08/2013 - 21:35 | Link to Comment EINSILVERGUY

Spot shortages. They don't make it anymore and its drying up.  Miles Franklin mentioned that its getting more difficult to procure. no one is selling at these levels and would probably take silver going back up to $40 for people to let losse of some

Mon, 04/08/2013 - 20:41 | Link to Comment e m m
e m m's picture

There must be some "sophisticated" correllation system in the market. This USD/JPY sellof spiked EUR and CHF 40 about points higher.

Mon, 04/08/2013 - 20:46 | Link to Comment SK8boarder
SK8boarder's picture

40 points. or 40 pips.

Mon, 04/08/2013 - 20:42 | Link to Comment buzzsaw99
buzzsaw99's picture

They must be making a fortune jawboning that thing back and forth.

Mon, 04/08/2013 - 20:43 | Link to Comment BandGap
BandGap's picture

Shit, I saw this thing in Godzilla movies ALL the time. INSTANT.

Tue, 04/09/2013 - 07:22 | Link to Comment StychoKiller
StychoKiller's picture

Gotta wonder when Mt Fuji is gonna crack open for Godzira to come struttin' out!

Mon, 04/08/2013 - 20:48 | Link to Comment DrDinkus
DrDinkus's picture

unrelated-great north korea doc...what a strange, sad place

Mon, 04/08/2013 - 20:56 | Link to Comment lolmao500
lolmao500's picture

North Korean workers failed to show up for work on Tuesday, bringing operations at the Kaesong Industrial Complex to a halt, government officials said.

The canary in the coal mine just died...

Mon, 04/08/2013 - 21:15 | Link to Comment ebworthen
ebworthen's picture

Excellent article by Grant Williams via John Mauldin:

Hope the link works.

Mon, 04/08/2013 - 21:17 | Link to Comment Yen Cross
Yen Cross's picture

     Don't forget these 3 macro reports out of China in 15 minutes, as they could be hazardous to your Asia trade. ( we will probably be baffled with bull shit as usual) ;-)

    18:30       CNY             Chinese CPI (MoM)           -0.6%     1.1%    
    18:30       CNY             Chinese CPI (YoY)           2.4%     3.2%      
    18:30       CNY             Chinese PPI (YoY)           -1.8%     -1.6%    

Mon, 04/08/2013 - 21:37 | Link to Comment ebworthen
ebworthen's picture


Japan goes QE Kamikaze!

It will work, or it won't.  My guess is that ultimately it won't.

Mon, 04/08/2013 - 23:22 | Link to Comment BigInJapan
BigInJapan's picture

I remember when that stroke-faced side-of-the-mouth-talking alcoholic Aso said, "100 Yen to the Dollar wouldn't be a bad thing."

Translation: "We have no control over this fucking thing. We only talk like we do."

Tue, 04/09/2013 - 00:25 | Link to Comment dr.charlemagne
dr.charlemagne's picture

I may start to use bitcoin as a medium of exchange after it has demonstrated considerable, long term STABILITY in buying power, as of now its a dangerous speculation at best, ponzi scam at worst.

Tue, 04/09/2013 - 01:32 | Link to Comment MFLTucson
MFLTucson's picture

Well for fuck sake, I see how this makes perfect sense after all who doesnt believe a politician?

Tue, 04/09/2013 - 01:43 | Link to Comment chump666
chump666's picture

Carry trade on the AUD, brutal.  1.05 looks like a top.  Unless North Korea (China's attack dog) sends a missile towards Japan.


Tue, 04/09/2013 - 02:34 | Link to Comment chump666
chump666's picture

*N Korea warns foreign in South to evacuate – KCNA news agency

Sh*t is about to go live.

Tue, 04/09/2013 - 05:25 | Link to Comment Sid James
Sid James's picture

The Japanese government has been taking advice from Tepco.

Tue, 04/09/2013 - 06:04 | Link to Comment world_debt_slave
world_debt_slave's picture

Economists are analogous to witchdoctors

Tue, 04/09/2013 - 07:24 | Link to Comment StychoKiller
StychoKiller's picture

Meh, Witchdoctors actually make some sort of sense!

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