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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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.

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 

tsx500's picture

jfc i'm so confused !

bania's picture

Looks like that Aso needs to shut his mouth!

markmotive's picture

The Nikkei is still way overbought based on this:

In fact, pretty much everything looks overbought.

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!

Go Tribe's picture

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

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.


ziggy59's picture

Fed's Bernanke sees central banks' QE mutually constructive

May you rot in Hell, Ben

Jon Bong Jovi's picture

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

fonzannoon's picture

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

kito's picture

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

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.

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....

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.

kito's picture

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

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.

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.

fonzannoon's picture

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

Bob Dylan

StychoKiller's picture

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

Major Major Major's picture

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

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.

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

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.


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

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.

SK8boarder's picture

40 points. or 40 pips.

buzzsaw99's picture

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

BandGap's picture

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

StychoKiller's picture

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

DrDinkus's picture

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

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...

ebworthen's picture

Excellent article by Grant Williams via John Mauldin:

Hope the link works.

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%    

ebworthen's picture


Japan goes QE Kamikaze!

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

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."

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.

MFLTucson's picture

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

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.


chump666's picture

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

Sh*t is about to go live.

Sid James's picture

The Japanese government has been taking advice from Tepco.

world_debt_slave's picture

Economists are analogous to witchdoctors

StychoKiller's picture

Meh, Witchdoctors actually make some sort of sense!