USDJPY Slumps Most In 4 Months As Nikkei Futures Tumble 450 Points

Tyler Durden's picture

While the taper is apparently priced in, someone forgot to tell Emerging Market FX markets again as from India to Indonesia and from Thailand to the Philippines, currencies are tumbling against the USD. While most of Asian FX is weakening, the JPY is surging - its biggest gain in 4 months. Of course, with Japanese cash markets still closed, futures are bearing the brunt as Nikkei 225 futures are down 450 points from New Year's Eve's high close, filling the Christmas Eve gap perfectly.


Nikkei 225 Futures have fille dthe Christmas Eve gap higher...


as USDJPY tumbles... (JPY strength)

Even as most of Asia is seeing its FX dump against the USD...


For now, S&P 500 futures are holding in despite the JPY carry slump...


But Asian equities are tumbling (most notably Korea and Thailand)...


Time to get back to work Mr. Kuroda...

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VD's picture

JPY strength is the enemy of Abe&co. -- just wait till NKD opens back up and central planning resumes!

Soul Glow's picture

Central Planning ran its course, thus why the IMF begin discussing uninsured deposit confiscation months ago.  Stocks all over the world will now drop 10% - 20% in the coming months and gold will begin its next leg up.

kaiserhoff's picture

When the US sneezes, the third world gets pneumonia.

It's not fair.  It's not even rational, but it's the way markets have always been.

Hedge accordingly.

satoshi101's picture

When the FED farts ZH takes a DEEP BREATH,

Get over it folks the USA is NOT omnipotent, in fact its safe to say they're a fucking dinosaur blowing in the fucking wind.

Probably the most disturbing narrative of all on ZH is FED omnipotence, ... For god sakes look at greenspan, Benanke, and Yellen Bitch, these fucks are clueless, ... if they got mugged on the street they would be begging for seconds.

It say's it all when the fucking losers are held with esteem, the most important thing you zh fucks can learn is to hold the FED and all the US gov in fucking contempt, cuz at the end of the day the US gov is just a bunch of pussy's like BUSH, QUAYLE, or OBAMA.

kliguy38's picture

Oh contraire............Central planners will never stop......they are like cockroaches and even with a green glass nuclear event they'll still be alive.......Make no mistake this game will NOT stop......

Soul Glow's picture

Right, because they control the world and there is nothing we can do about it.  Let's all get in line and do what they say.  They will never fail because they can flood the world with as much money as they want.  They are the rulers of the world and their plans will never fail.  They will never fail!

Al Gorerhythm's picture

Strength? Measured against what? Turds bobbing in a septic tank, breaking down slowly. Currency wars will lead to shit fights.

Cognitive Dissonance's picture

Isn't it funny how drastically the 'market mood' changed from 12-31-2013 to 01-02-2014?

<Get back in there and turn those machines on.>

NoDebt's picture

As another board member put it so elegantly:

Untaper!  Untaper!

kaiserhoff's picture

We need more cow bell.

Print more cow bell now, damn it!

Wait a minute.  Does that work with coeds?

Soul Glow's picture

Agreed.  These fuckers might have learned how to fly the helicopter, but they have no idea how to land it.

Oh regional Indian's picture

Hah...good analogy.

Autorotation to them is the revolving door between NY and DC.


VD's picture

the crash has already been engineered: we just need some dramatic moves on both sides for 'legitimacy' before it all tumbles....

Seer's picture

Nature set the table.

Humans are just struggling to come up with the story to write in the history books: going to be hard to make TPTB look good for posterity...

disabledvet's picture

<-----"do not seek the treasure."
<-----"we thought you were a toad."

jerry_theking_lawler's picture

the .fed has been on vacation (many new year's parties to attend and hangovers to deal with). they will be back to normal tomorrow...monday at the latest.

NoDebt's picture

A 2.8% move?  OK, now we got a little action going on.

Soul Glow's picture

This is just the beginning....

NoDebt's picture

Stop it.  I'm getting all misty.

Soul Glow's picture

Gold and silver are staying flat as Asia falls off a cliff, US stocks had their worst day in a long time as gold and silver popped, China is in a world of banking hurt, Abe went full retard, Bernanke went full retard only to make it look like, in his last days, everything he did was so successful he can Taper (even more full retard in the eyes of Yellen who will likely Un-Taper), LaGarde wants a "One Off Tax Levy" on all Nation-States (Full Retard), and Obama is on vaca.  

These people are idiots and they don't have some magic plan.  They have a hammer - digital currency printers - and everything looks like a nail.  It's all coming to a head now.  You could see it with rates rising, now stocks are falling, and gold is standing its ground.

Once again, this is just the beginning.

satoshi101's picture

I asked this today, but never got an answer from the HERD at ZH.

ZAR and INR are in the toilet, but so far JPY and AUD are holding,

But there is a clear trend, ... now INR/ZAR are down 50% relative to USD in just over a year, and now it appears that JPY will be soon,

So very soon if this trend holds quite a few currency's outside of the USD will be down +50%, and those people will BUY gold to preserve their 'real wealth' ( think India ).

In the meantime relative to the USD, the CHF, CNY, SGD, ... are holding up just fine, and better than USD.

The only pattern I see here is rating, the SGD/CHF are 'AAA' paper, USD of course shit backed by a gun, Japan tried to act tough with the gun, but failed, they can't stand up to the chinese,... they got no respect like 'rodney dangerfield'.


A second issue is how long will the CHF/SGD HOLD, before they too fall to the USD?

The trend here is everybody is falling like dominoes,... I know its counter-intuitive, but you got to read the fucking tape.

Lastly, these rhetorical questions such as this will get you banned and/or deleted here, but they need to be asked.


Itch's picture

He's saying that the framus intersects with the ramistan approximately at the paternoster. 

Seer's picture

He did NOT say that!

He was asking a question!

"[Does] the framus intersects with the ramistan approximately at the paternoster?"

There, fixed!

disabledvet's picture

good question. let me answer it my usual way: by stating what i think while ignoring everything else. "there are only three major currencies in the world: the Dollar, the Euro and the Yen." the Yen collapsing is not just "losing the Battle of Midway." It is Douglas Tokyo Bay...pulling rank...and loving it. "these things don't just happen." As I recall it was the Marines and Navy that did the bulk of the fighting in the Pacific. Some have argued that MacArthur was part of a problem (dividing the command) not part of a solution. Kinda like Wall Street and Washington getting along. he was..."his solution." and so it is with yen trading. not a currency trader...have to consult Yen/Cross on that one. Here would be my "financial advisor" if i were all in on just dollar/yen: take a look at the corporate roster if you want to know why. "that's your opposition."

satoshi101's picture

I was asking if anyone here thought the JPY would go down like the INR/ZAR have gone south the past year?

I was asking if anybody here noticed that the trend seems to be that currency's in pairs are dropping off the table in set's, it appears to me that AUD/JPY could be the next to go south -50% just like INR/ZAR.

If the JPY becomes worthless will the Japs go GOLD crazy like India?


Anyways you can lead a ZH to a beer, but you can't make him drink.


Seer's picture

"Anyways you can lead a ZH to a beer, but you can't make him drink."

It matters what you're offering.   Sake? (might be the problem)

Al Gorerhythm's picture

If that's what you wanted to ask, then why didn't you say so?

In answer to your vexed question; Don't know but I do know that beer is a solution.

FieldingMellish's picture

Pomo on Monday... resume your positions...

Dr. Engali's picture

The year end window dressing is done and the bonuses are set. Now the piper must be paid. A good chance to BTFD.

NoDebt's picture

BTFD?  That's sooooo 2013!

It's different this time.  The great collapse is finally upon us.  Straight down to zero by year end.  

Or not.

One And Only's picture

JPY is too volatile to be a currency.

Bitcoiners will be monitoring JPY deveolpements closely.

NoDebt's picture

No they won't.  Bitcoiners don't give a crap about the move of a single currency.  They give a crap about what coutry might outlaw their exchanges next or regulate them into oblivion.

One And Only's picture

Don't need exchanges for bitcoin to thrive. All you need is the internet.

China shut down a bitcoin exchange. India shutdown a bitcoin exchange. Bitcoin doesn't give a shit.

Seer's picture

I get this point: It's a technical issue.  But... this is more than just a "technical" world.

The NSA rides over the Internet.  The NSA gets paid in USD.  A lot of power stacked up there.  And don't forget the power of Edward Bernays' play book: lots of marketing power/potential to demonize all the "Biitcoin terrorists." (this is the same argument I made about holding PMs; the slight relief with them is that much of TPTB hold PMs- the propaganda would be a little bit trickier to work)

"The surgery was a success, but the patient died." said the Surgeon...

honkadoo's picture

Bitcoin doesn't give a shit… Bitcoin is so nasty. It just takes what it wants.

chump666's picture

It's Asia, crisis will start there, big boocoo outflows:

*Disappointing China PMI, political crisis in Thailand and demonstrations in Malaysia and Vietnam.

*Lipper data investors sold USD3.3bn from bond funds (Asia) in the latest week.

American centric madness will come undone, once China sells the short end.  Driving yields up forcing the Fed to, yes, finally lose control of the curve.  Those arrogant sh*tbags.


hell yeah

Seer's picture

Yes, the poorer players will get shit on first.

chump666's picture

Yeah but don't short nuthin'...yet. Just saw an insane short squeeze on the AUD, looks like HFT gaming the shorts after the weak China PMI. 

Soul Glow's picture

Short everything....'cept gold and silver :)

darteaus's picture

Time for China and Japan to ramp the public up over some islands somewhere...Korea too...

disabledvet's picture

1998...which led directly to this: BIG MONEY. forget currency pairs, options spreads, CDO's or MBS's...this is the ULTIMATE in trading: this is what Jamie Dimon FAILED to do correctly with his London Whale. What is the one thing Warren Buffet wants to pull off before he's done just going long and buying everything? This is one thing he could do. if done successfully in effect you take an ownership stake in a entire industry. But to do it you have to make not one but two correct both time and directional calls in interest rates. for example "disabledvet would have to be right in both his Treasury bet" (providing the leverage--all long with massive build) with the correct time and direction in the target's rate (the LTRO--in effect the ECB itself...all short.) the purpose would be to "buy" as it were industrial capacity of all of Europe itself. one way to achieve this goal believe it or to just say you're going to do it...aka "the Billy jack method." and i'm being totally serious when i say this.

PowerPlayer's picture

Don't worry,the Fed will begin POMO on Monday, so the markets can continue to climb.  Mr. Yellen needed a vacation.    

MFLTucson's picture

Currencies are tumbling against the dollar?  Wow, the dollar is backed by nothing and has 17 trillion in debt attached to it.  Think this may be another set up by the American/European fraud machine?  I do!!