USDJPY Reacquainted With Gravity

Tyler Durden's picture

Zero-G free fall follows. But...But... the USDJPY is going to 105-110 they said. Don't fight the Japanese Fed they said. Elsewhere, the Watanabe retreat bugle just became the Watanabe gong show. For now, GETCO and DE Shaw's USDJPY-ES correlation algos are furiosuly pretending to ignore what is going over in FX land. We wish them luck...

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slaughterer's picture

DE SHAW celebrate most excellent drop in now reverse carry pair trade with comrade Tepper crew

WestVillageIdiot's picture

I hope some ZH'ers are making money on this drop in the Yen.  I can never figure out how to do that trick. 

mayhem_korner's picture



Might help if you first realize that the Yen is strengthening against the USD.  It's the USD that is dropping in this pairing.

WestVillageIdiot's picture

Statler and Waldorf, is anybody on ZH making money off of this?  I hope so.  Take it from the hedge fund b-bags and make my day brighter.

El Viejo's picture

I made a little with YCS but be careful with the decay factor on some of these plays. (Get in and out in a short time frame)

WestVillageIdiot's picture

The fucking Yen is on more PEDs right now than Alex Rodriguez ever was. 

The Yen is skyrocketing at noon EST. 

El Viejo's picture

Yep, I sold my YCS near the top and now waiting for the freefall to end. I lived in Japan for a couple f years. It's and interesting place. They do things at specific times of the year. They tend to adjust their currency near September, but these days who can figure anything .

Fleecer's picture

gonna need moar y-axis

Oracle of Kypseli's picture

You can stop gamma rays with thick walls of lead, but you can not stop gravity.

Check with all the quantum physicists. Gravity is a problem. Despite Bernanke's explanation that the earth sucks  

CrashisOptimistic's picture

1) The oldsters in US Ts are making money on it.

2) Don't fight the Japanese Fed, unless you bet on reality, which is that the US Fed will buy Yen and NOT allow Toyota to destroy the Administration's showcase GM.

3) For the first time since the global circle jerk started, all the CBs have stopped working together.  They will not allow Japan to collapse its yen.  Too much risk to other country exports.

4) Japan is in huge trouble if other countries oppose BoJ maneuvers.

NotApplicable's picture

Cartels can never truly work together for very long, as the incentive to merely manage others' expectations (read: cheat) is too strong in comparison to the dangers of breaking the whole scam (right up until it starts to unwind). So, they kind of work on a pendulum between these two extremes, with all actors lying the whole time.

CrashisOptimistic's picture


Well said, case in point the G7 congratulating Japan on its boldness and imagination and how they all supported Japan's efforts -- whilst their own CBs were buying yen hand over fist to oppose those efforts.

Hard to make a case for this spike in the Yen being anything other than CB buying via proxy.

Xue's picture

Deflation bitch!

LawsofPhysics's picture

only if the japanese don't need to eat or use energy...

good luck with that.

WestVillageIdiot's picture

Or go to college, buy insurance, wear clothes (I've seen no deflation there), drink beer, etc. etc.

I do not see price deflation anywhere.  The debt charts are all parabolic.  So, where the hell is this deflation?  Seriously.  It is like Santa Claus.  I hear about it, but I never seem to see it.  Except in the interest rate I get from the bank.  Is that it?

roymunnson's picture



That Kyle Bass guy was right

YC2's picture

Check your pocket for nickels!  

nope-1004's picture

Looks like a PM chart.  Obviously no gaming in this trade either.......


Yen Cross's picture

    That trade is getting blasted!  NIKKEISHIMA Bitchez.

Japan NI225    12,744.00    12,904.02    12,979.00    12,724.00    [-160.02    -1.24%]    15:03:1

BandGap's picture

There is a strange similarity with all these Japanese charts.


daily bread's picture

yes, they look like the flightpath of a kamikaze pilot

Oldballplayer's picture

I had to log in the up arrow that. That shit is funny.

insanelysane's picture

At some point, technicals matter.

WestVillageIdiot's picture

Reading your comment quickly, I read the comment as, "at some point, testicles matter".  That was funny. 

Yancey Ward's picture

Nothing hurts worse than getting hammered in the technicals.

slaughterer's picture

"History shows again and again that nature shows up the follies of men..."

Dr. Engali's picture

It will be interesting to see who blows up with this kind of currency volatility.

Everybodys All American's picture

Kuntlow's king dollar is getting hammered right now.

WestVillageIdiot's picture

He's too busy to care. He's at the Minneapolis airport asking the guy in the stall next to him for toilet paper. 

Clueless Economist's picture

Larry "Wide Stance" Craig will give him more than toilet paper.

WestVillageIdiot's picture

Just think if you are ever in an airport bathroom and you actually do need toilet paper.  That's a dilemma. 

LawsofPhysics's picture

So WWIII will get started in Asia then.  Boy, the syrians will be disappointed < sarc off >

ghengis86's picture

So why is Yen strengthening with outright monetization? Front running inflation or FX?

LawsofPhysics's picture

both, the death of all Fiat.

ghengis86's picture

Then the delicious irony is the more Abe prints the more yen gets bought? Lol. Why can I - some know nothing douche on the Internetz - gets this but our overlords cannot?

RafterManFMJ's picture

Why can I - some know nothing douche on the Internetz - gets this but our overlords cannot?


It is difficult to get a man to understand something, when his salary depends upon his not understanding it!-Upton Sinclair

thereisonlyonelaw's picture

I do not know where demand is coming from but there are two things to consider:


1. Repatriating foreign investments to cover losses from other assets (bonds). This may also explain the fall in the Nikkei.

2. Belief that the QE is not going to continue (partly due to bond fears) and that Abenomics was just a fad with no consequence.


It's important to remember that even at these prices, the yen is still far above where it was not that many months ago. This may simply be short term profit taking.

slaughterer's picture

Get Bass on Bloomberg with some deadpan doom proclamation and Abe is ready to push the "USD/JPY astro ramper" (TM Samsung).  

SheepDog-One's picture

Don't fight the Fed's....well up until they suddenly just pass out and drop to the floor....then you can fight em I guess.

RafterManFMJ's picture

Then it's time to put the boots to them.