Is JPY About To Get The 'Gold' Treatment?

Tyler Durden's picture

Overnight a number of media types discussed the inevitability of the 100JPY Maginot Line being crossed (the same way they predicted the inevitable breach of USDJPY 100 two weeks ago). It appears a combination of over-size positioning, options barriers, and economic reality has reduced demand for the JPY cross as a carry trade this morning and after testing 99.98 overnight, JPY is crashing higher since the open of the US equity market. It seems while the G-20 closed its eyes and held its nose, the 'market' is not quite so willing.



just like was 2 weeks ago...


Why should you care about JPY? Because in this 'market' it's all that matters...


Charts: Bloomberg

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A_Dog's picture

I hope so, want to rebuy at $78

Lohn Jocke's picture

Something is wrong, we must all go out and spend money!

The more stitches the less riches, bitches!

SWRichmond's picture

"No enemy bomber can reach the Ruhr. If one reaches the Ruhr, my name is not Goering. You may call me Meyer."

- Hermann Goering, September 1939

hedgeless_horseman's picture



Is JPY About To Get The 'Gold' Treatment?

No, but the DXY sure as hell is.

Debtonation's picture

So can I buy a new digital camera for 25% less now.  If not, then Japan failed, or at least maybe they succeeded in pushing up import prices for their resource deprived country, surely that will create millions of jobs.  I'm sure someone with a Ph D thought this all through before hand.

hedgeless_horseman's picture



So can I buy a new digital camera for 25% less now.

Hardly anyone buys a camera anymore, because the phones take such good pics.  Only unemployed-wannabe photojournalists or pedophile-senior-picture photographers carry a camera.

Scro's picture

Phone cameras suck, unless you post to FB or whatever.

TrumpXVI's picture

Yup, unfortunately, cameras suck, too.  No more optical viewfinders in the lower priced cameras....useless in bright light.

A_Dog's picture

Google: Nokia Lumia 920, it has best low light camera ever with OIS and PureView 808 (replacement coming in July with Windows Phone 8), 41 mpx, bitheczzzz

akak's picture

HH, I could equally retort that only trend-sucking, self-important, self-indulgent, terminally short-term-thinking and short-term-acting overgrown teenagers carry cell phones.

Face it, all you neurotic twits obsessed with your latest e-gadget: you are NOT that important!  But have fun paying hundreds or thousands of dollars per year in order to be tweeted and tooted and texted about your friend's latest bowel movement or your girlfriend's tragically broken finger nail --- all while being tracked and monitored in minute detail by Big Brother, courtesy of his new Utah facility.

css1971's picture

41 megapixel phone camera:

More importantly it's sensor is monstrously large.

Scro's picture

Massive MP = 24" rims on a Monte Carlo = useless.

MillionDollarBonus_'s picture

Japan has been warned about its stingy monteray policy by economists all over the world. Now I hope the consequences of hawkish monetary policy are clear for all to see. Japan could have ended it's economic slowdown a long time ago. But instead they chose a path of frugal and pathetic monetary policy; with easing that was simply insufficient for an economy hungry for stimulus.

Ham-bone's picture

Silly rabbit...who said anything about Japan's economy getting better...this is solely a play on nominal asset values.

RebelDevil's picture

The world economy would have recovered as a whole if the people of the world chose to support cheap alternative energy technologies and reformation of the financial system.

They chose to instead support greed.

thisandthat's picture

You need to clarify which cheap alternative energy technologies are those, you refer to - wind/solar/rainbow unicorn farts are out of the equation...

MeelionDollerBogus's picture

Clearly Japan needs to use freshly printed yen to build 200-story radiation-breathing robots that also print money out their poopers. It's time to get SERIOUS about monetizing instead of this dribble-drabble of free yen.

rehypothecator's picture

I don't understand the point of this article.  It's not like this is the first time in history a large, round number served as imporant resistance for something to break through.  So the Yen has tried and failed twice to cross 100.  Are we supposed to draw important conclusions about this?  

Ham-bone's picture

Dollar powerrrrrr, bitchez!!!

fonzannoon's picture

This one makes my head explode.

DeadFred's picture

I remember the good ole days when all you had to do was watch EURUSD to see where the market was going. Things get so complicated!

smlbizman's picture

so the yen at 100....does that mean it equals 1 us penny, and not the 82's but the current penny?

robertocarlos's picture

Yes, Yen at 100 means one Yen equals one penny.

toys for tits's picture

England has pennies, the US has cents.

unwashedmass's picture


and just like gold, when the public refuses to jump in and buy this tissue paper, well, we'll see the yen destroyed over the next couple of months. 


funny thing about the gold/silver situation....bernanke seems to have made a bad situation (potential failure of the Comex, LBME) catastrophically worse. the gold/silver rush on now worldwide is quite something to see. 


guess people aren't quite as dumb as Ben assumes them to be. 

BurningFuld's picture

They were guessing by dropping the price that much that people would panic and start selling their Physical Gold. BAD GUESS you dumb fucks.

Wondering if that meeting last week was called by the Banksters and NOT Obama.  "Barack we are almost out of Gold. We would really like your permission to hammer the living shit out of it in a last ditch effort to save our asses. But we need you to tell all the regulators to look the other way. Thanks! And remember free golf for you. And you get the hang out with all us cool people."

unwashedmass's picture


don't forget, he gets a job on the Goldman board in a couple of years as well. 

HoofHearted's picture

Come on, at least they did get panic in the PM market. The panic was for everyone to head to getting the actual phyzzz.

I bet the same bankster bastards got long bitcoins around 250 or so....dumb fucks

Manthong's picture

that meeting was probably originated by some quant.

GVB's picture

+1 for sarcasm and humour. Which is just part of the reason why I scroll these comments;

realitybiter's picture

......"and it is the usual deal....we will give you a million in campaign contributions for every billion we can carve out.  we cool?  cool.  <chuckle>  (dimon leans over to weasel Lloyd) "can you believe how f-ing stupid his supporters are?  we launder drug money, rig markets -draining their pensions, get PAID to administer their food stamps (hahahaha), and these jackasses STILL adore him.  guys a freaking genius.  He should have been a bond salesman."

Rip van Wrinkle's picture

If Obama plays golf like he plays basketball, it's a f*cking miracle he's off the course before dark.

Pareto's picture

oh fuck man!!!!  +100  wiping coffee off the screen......again!

Panafrican Funktron Robot's picture

I'm still marvelling at what a terrific gift that was.  Christmas came early.

BigJim's picture

 ...They were guessing by dropping the price that much that people would panic and start selling their Physical Gold. BAD GUESS you dumb fucks.

I was reading Detlev Schlichter's Excellent Paper Money Collapse the other day and reflecting on this, the 'exchange value of a good as money'. One of the principal objections your average idiot has about using gold as money is that 'the price is too volatile', and these COMEX raids reinforce this belief... and reinforce the sheep's belief in the wealth-preserving power of... fiat.

I think they'll be in for a rude surprise. Eventually. But the turning of the tide in this war depends cheifly on the psychoogy of the participants; we might be able to see the COMEX raid was stupid, but it may have bought them time via entrenchment of the 'sturdiness' of fiat in the average boob's psyche.

Clint Liquor's picture

You can always rely on Central Planners to be arrogant and incompetent.

tarsubil's picture

From 1934 to 1967, gold was kept right around $35. Then in 1967-1968, all hell broke loose. The manipulation of the COMEX put a defense area around $350 and then in around 2006, all hell broke loose. Once the COMEX fails. Once it closes its windows on delivery, I'm not sure if the powers that be have another line of defense for suppressing the price of gold.

BobPaulson's picture

When did this rush happen? A rush is when I can sell the gold I bought in 2004 to a shoeshine boy racing off the cliff with the lemmings. A rush is when walmart shoppers are selling FRN's for gold and getting ripped off by fake gold con men.

Right now is still just a sliver of the population taking advantage of a decent price that they know will work its way back up again.

If you have time, watch this video about Dawson in 1898.

I was in the Yukon at the headwaters of the Klondyke this past summer and I can tell you the land up there is beautiful and merciless. A rush is when people sell their life savings and risk their lives, not when they take a bit of their extra cash and buy some jewelery when there is a price dip.

Wait for it.


MeelionDollerBogus's picture

that day is never coming. Shoeshine boys are wondering if they should start working beside hookers & have no money left over nor concept of savings which would lead them to gold or silver. It’s not an iCrap and that’s that. “this time things are different” in one particular way: people are so incredibly dumb, today about investing and saving, you need not worry which mistake they’ll make running into a bubble, they will run up debt and run into starvation first, combined with sheer Idiocracy

combatsnoopy's picture

I am the wannabe Mrs. Wasabi Wantanabi Obi Wan Kenobi. 

pagan's picture

This is really saying something... The Japanese has embarked on a massive QE program and the Yen is getting stonger.

Strong deflationary forces.

LawsofPhysics's picture

"Strong deflationary forces." - Not quite, look at food, fuel, and other commodity costs in Yen.  This is purely a decoupling of eCONomics from fucking reality.  Most people live in the real world, their lives have real fucking inputs.  The fruadulent game in the "official" market is now being recognized for what it is, a fraud.  Go long black markets, sharecropping and a dependable tribe.  History is clear on what happens next.

DeadFred's picture

All you really need to know is how many people are short Yen because that's the sure-fired position.

Cognitive Dissonance's picture

Are we witnessing a Nervous Breakdown?


I'm about
To have a nervous breakdown
My head really hurts
If I don't find a way out of here
I'm gonna go berserk ''cause
I'm crazy and I'm hurt
Head on my shoulders
It's going...berserk

Black Flag