Mr Soros Trumps Mrs Watanabe
While the dominant flow of policy action from the Japanese has, until last week, been of the jawboning variety, the actual selling pressure on the rapidly devaluing currency has come from foreign sources. As the following chart shows, the last few months have seen not Mrs Watanabe (euphemistically selling her JPY to find better returns elsewhere) but the likes of Mr. Soros and Mr. Bass who see the endgame disorderly collapse of a currency (or perhaps it is the rest of the G7 central bankers unwinding JPY-based reserves to 'help' their fellow central planner out). The bulk of JPY selling pressure has come during non-Tokyo trading hours, as the Japanese, until last week at least, appear much more timid about Abenomics' chances of success.
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