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 | 3424397 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 | 3424416 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 | 3424478 tsx500
tsx500's picture

jfc i'm so confused !

Mon, 04/08/2013 - 21:00 | 3424526 bania
bania's picture

Looks like that Aso needs to shut his mouth!

Mon, 04/08/2013 - 22:56 | 3424888 Supernova Born
Supernova Born's picture

Just say nyent. 

Mon, 04/08/2013 - 23:47 | 3425045 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 | 3424458 tom a taxpayer
tom a taxpayer's picture

Ying Yang Yen.

Mon, 04/08/2013 - 21:03 | 3424538 fomcy
fomcy'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 | 3425303 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 | 3424410 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 | 3424421 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 | 3424701 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 | 3424721 kalum
kalum's picture


Mon, 04/08/2013 - 20:31 | 3424429 fonzannoon
fonzannoon's picture

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

Mon, 04/08/2013 - 21:01 | 3424530 kito
kito's picture

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

Mon, 04/08/2013 - 21:06 | 3424546 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 | 3424614 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 | 3424635 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 | 3424718 kito
kito's picture

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

Mon, 04/08/2013 - 22:17 | 3424746 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 | 3424430 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 | 3424498 fonzannoon
fonzannoon's picture

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

Bob Dylan

Tue, 04/09/2013 - 07:21 | 3425484 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 | 3424442 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 | 3424452 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 | 3424483 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 | 3424512 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 | 3424608 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 | 3424459 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 | 3424503 SK8boarder
SK8boarder's picture

40 points. or 40 pips.

Mon, 04/08/2013 - 20:42 | 3424475 buzzsaw99
buzzsaw99's picture

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

Mon, 04/08/2013 - 20:43 | 3424486 BandGap
BandGap's picture

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

Tue, 04/09/2013 - 07:22 | 3425497 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 | 3424506 DrDinkus
DrDinkus's picture

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

Mon, 04/08/2013 - 20:56 | 3424523 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 | 3424571 ebworthen
ebworthen's picture

Excellent article by Grant Williams via John Mauldin:

Hope the link works.

Mon, 04/08/2013 - 21:17 | 3424579 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 | 3424610 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 | 3424971 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 | 3425123 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 | 3425210 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 | 3425219 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 | 3425258 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 | 3425345 Sid James
Sid James's picture

The Japanese government has been taking advice from Tepco.

Tue, 04/09/2013 - 06:04 | 3425381 world_debt_slave
world_debt_slave's picture

Economists are analogous to witchdoctors

Tue, 04/09/2013 - 07:24 | 3425503 StychoKiller
StychoKiller's picture

Meh, Witchdoctors actually make some sort of sense!

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