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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Thu, 06/06/2013 - 11:04 | 3629821 slaughterer
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DE SHAW celebrate most excellent drop in now reverse carry pair trade with comrade Tepper crew

Thu, 06/06/2013 - 11:18 | 3629900 WestVillageIdiot
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I hope some ZH'ers are making money on this drop in the Yen.  I can never figure out how to do that trick. 

Thu, 06/06/2013 - 11:24 | 3629937 mayhem_korner
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Might help if you first realize that the Yen is strengthening against the USD.  It's the USD that is dropping in this pairing.

Thu, 06/06/2013 - 11:29 | 3629957 WestVillageIdiot
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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.

Thu, 06/06/2013 - 11:45 | 3630020 El Viejo
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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)

Thu, 06/06/2013 - 11:57 | 3630107 WestVillageIdiot
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The fucking Yen is on more PEDs right now than Alex Rodriguez ever was. 

The Yen is skyrocketing at noon EST. 

Thu, 06/06/2013 - 12:01 | 3630116 El Viejo
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 .

Thu, 06/06/2013 - 12:07 | 3630164 Fleecer
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gonna need moar y-axis

Thu, 06/06/2013 - 12:19 | 3630234 mayhem_korner
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Thu, 06/06/2013 - 12:28 | 3630263 Oracle of Kypseli
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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  

Thu, 06/06/2013 - 12:00 | 3630120 CrashisOptimistic
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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.

Thu, 06/06/2013 - 12:08 | 3630173 NotApplicable
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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.

Thu, 06/06/2013 - 12:14 | 3630202 CrashisOptimistic
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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.

Thu, 06/06/2013 - 12:38 | 3630335 markettime
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Just BTFD in gold. 

Thu, 06/06/2013 - 11:07 | 3629837 Xue
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Deflation bitch!

Thu, 06/06/2013 - 11:16 | 3629890 LawsofPhysics
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only if the japanese don't need to eat or use energy...

good luck with that.

Thu, 06/06/2013 - 11:28 | 3629950 WestVillageIdiot
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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?

Thu, 06/06/2013 - 11:34 | 3629986 MachoMan
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Thu, 06/06/2013 - 11:36 | 3629999 WestVillageIdiot
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What are these "wages" of which you write?

Thu, 06/06/2013 - 12:09 | 3630183 NotApplicable
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The funding mechanism for Obummercare.

Thu, 06/06/2013 - 11:07 | 3629838 roymunnson
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That Kyle Bass guy was right

Thu, 06/06/2013 - 11:12 | 3629867 YC2
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Check your pocket for nickels!  

Thu, 06/06/2013 - 11:08 | 3629842 nope-1004
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Looks like a PM chart.  Obviously no gaming in this trade either.......


Thu, 06/06/2013 - 11:08 | 3629843 Yen Cross
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    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

Thu, 06/06/2013 - 11:09 | 3629845 BandGap
BandGap's picture

There is a strange similarity with all these Japanese charts.


Thu, 06/06/2013 - 11:13 | 3629874 daily bread
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yes, they look like the flightpath of a kamikaze pilot

Thu, 06/06/2013 - 11:22 | 3629920 Oldballplayer
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I had to log in the up arrow that. That shit is funny.

Thu, 06/06/2013 - 12:10 | 3630186 NotApplicable
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That's racist!

Thu, 06/06/2013 - 11:10 | 3629852 insanelysane
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At some point, technicals matter.

Thu, 06/06/2013 - 11:32 | 3629979 WestVillageIdiot
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Reading your comment quickly, I read the comment as, "at some point, testicles matter".  That was funny. 

Thu, 06/06/2013 - 11:56 | 3630103 Yancey Ward
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Nothing hurts worse than getting hammered in the technicals.

Thu, 06/06/2013 - 12:11 | 3630190 NotApplicable
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Ow, my calls!

Thu, 06/06/2013 - 11:10 | 3629854 slaughterer
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"History shows again and again that nature shows up the follies of men..."

Thu, 06/06/2013 - 11:35 | 3629995 Shooting Shark
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"Daishikyuu hinan shite kudasai."

Thu, 06/06/2013 - 12:02 | 3630129 Yancey Ward
Yancey Ward's picture

Oh, no, there goes Tokyo.

Thu, 06/06/2013 - 13:28 | 3630575 1000924014093
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Thu, 06/06/2013 - 11:11 | 3629856 Dr. Engali
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It will be interesting to see who blows up with this kind of currency volatility.

Thu, 06/06/2013 - 11:11 | 3629861 Everybodys All ...
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Kuntlow's king dollar is getting hammered right now.

Thu, 06/06/2013 - 11:33 | 3629983 WestVillageIdiot
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He's too busy to care. He's at the Minneapolis airport asking the guy in the stall next to him for toilet paper. 

Thu, 06/06/2013 - 11:46 | 3630047 Clueless Economist
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Larry "Wide Stance" Craig will give him more than toilet paper.

Thu, 06/06/2013 - 11:51 | 3630065 WestVillageIdiot
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Just think if you are ever in an airport bathroom and you actually do need toilet paper.  That's a dilemma. 

Thu, 06/06/2013 - 11:12 | 3629868 LawsofPhysics
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So WWIII will get started in Asia then.  Boy, the syrians will be disappointed < sarc off >

Thu, 06/06/2013 - 11:13 | 3629870 ghengis86
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So why is Yen strengthening with outright monetization? Front running inflation or FX?

Thu, 06/06/2013 - 11:15 | 3629882 LawsofPhysics
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both, the death of all Fiat.

Thu, 06/06/2013 - 11:23 | 3629927 ghengis86
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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?

Thu, 06/06/2013 - 11:34 | 3629987 RafterManFMJ
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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

Thu, 06/06/2013 - 11:50 | 3630057 thereisonlyonelaw
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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.

Thu, 06/06/2013 - 11:12 | 3629871 slaughterer
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Get Bass on Bloomberg with some deadpan doom proclamation and Abe is ready to push the "USD/JPY astro ramper" (TM Samsung).  

Thu, 06/06/2013 - 11:13 | 3629873 SheepDog-One
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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.

Thu, 06/06/2013 - 11:34 | 3629990 RafterManFMJ
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Then it's time to put the boots to them.

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