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USDJPY Breaks 102 - Reverses All Bank Of Japan Gains

Tyler Durden's picture




 

Despite our insistence that their was nothing new in the BoJ's loan ceiling hike and lack of QE extension (and Goldman's 'this is already priced in' perspective), it still took the machines that are running USDJPY almost 36 hours to figure it out. USDJPY has retraced the entire 100 pip swing and has broken back below the crucial 102.00 level this morning. Time for some more jawboning about the potential for more QE - even as Kuroda insisted last night to the Diet that the government's tax hikes occur (if for no other reason to ensure this does not escalate into the 'monetization miasma' that they fear the market would believe). Of course, as we approach the US open, we would expect the usual ramp-job to lift stocks.

 

 

Remember - as Goldman noted,

As of January 31, the growth-supporting funding facility had provided ¥4 tn (already beyond its planned scale), while the stimulating bank lending facility had provided ¥5 tn for a total of ¥9.16 tn. The bank issued a target for the combined balance of loans to reach ¥18 tn by December 2014 when it announced its quantitative and qualitative easing program on April 4, 2013. With the end-March 2014 deadline for new applications approaching, the BOJ needed in practical terms to extend and expand the two facilities as it announced today in order to meet the end-December target. Today’s facility extension/expansion is already factored into the bank’s monetary base target.

Seems they were right but the market is just slow to 'get it'

 

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Wed, 02/19/2014 - 09:58 | 4452128 Spitzer
Spitzer's picture

Somebody just devalued the Canadian dollar this morning... what the hell...

 

http://www.24hgold.com/english/home.aspx?money=toronto

Wed, 02/19/2014 - 10:00 | 4452140 Motorhead
Motorhead's picture

HIE!

Wed, 02/19/2014 - 10:43 | 4452313 firstdivision
firstdivision's picture

RE Bubble is Canada is getting mighty close to that pin

Wed, 02/19/2014 - 10:00 | 4452139 Dr. Engali
Dr. Engali's picture

Damn Fx traders fucking up the carry trade. Who do they think they are?

Wed, 02/19/2014 - 10:04 | 4452154 wallstreetapost...
wallstreetaposteriori's picture

My memo said take the Yen to zero.... did they not that memo?

Wed, 02/19/2014 - 10:13 | 4452188 Oh regional Indian
Oh regional Indian's picture

Well Doc, I think the Yen carry trade is the pin on the grenade that they can pull as they please. And will when th esystem is ripe and ready. But they have so much stuff to buy up with their strong dorrar, stlong yen (compared to EM currencies especially).

Dirty schmucks, but the game is really childish. It's just time, how much time they have had to construct this house of cards.

ori

Wed, 02/19/2014 - 10:06 | 4452164 slaughterer
slaughterer's picture

Yen carry is a sucker's trade at this point now that the ES is tracking PMs. 

Wed, 02/19/2014 - 10:12 | 4452184 Johnny Cocknballs
Johnny Cocknballs's picture

I can think of something else that's gonna reverse any of Japan's gains, and it rhymes with "puke a femur" - at least if someone with a Boston accent said it.

It's one thing when a dog shits on your carpet.  It's another thing entirely if that dog could keep shitting, ceaselessly, and you were unable to remove any significant part of it.  Sure, early on, you might be able to watch a game on the couch, but sooner, rather than later, you aren't going to want to hang around.

...okay, not my best, but what happened to the fuku articles.  I just started looking into that, although it's certainly not my academic wheelhouse.  Still, back of the envelope stuff, that country is absolutely fucked, in ways which wiull be apparent within another 2/3 years, and it is amazing they are carrying on as if it is not the single most important thing by far to worry about.  It is batshit crazy relative apathy, as is the US government's apparent {if not secret} concern for the affects on the Pacific NW which could be right fucked in a 4/5 year time frame.   

 

[Disagreements/contrary thoughts esp. welcome]

Wed, 02/19/2014 - 10:30 | 4452264 Gromit
Gromit's picture

But Vancouver will be fine.

Real estate prices never fall in Vancouver.

Wed, 02/19/2014 - 10:33 | 4452275 BandGap
BandGap's picture

I cannot see a time where Japan will be viable once the shit hits the blades.

The only thing it has going for it now, as a nation, is that it is an arm up the ass of the Chinese to benefit the US.

Wed, 02/19/2014 - 10:51 | 4452334 nightshiftsucks
nightshiftsucks's picture

No man you're wrong,thats why they are having the 2020 Olympics there. sarc/

 The whole world is playing the same game,everything is fucked but they act like it's normal.There is no choice,extend and pretend or it crashes right now.

Wed, 02/19/2014 - 14:49 | 4453501 papa_lazarou
papa_lazarou's picture

Agreed. I keep thinking about the trailer for that horrible movie "2012," which went something like "What would the governments of the world do if they knew a global disaster was coming? Nothing."

The simple fact of the matter is: Fukushima is out of control and beyond human intervention. There is nothing that can be done to "clean it up" or stop radiation from leaking into the ocean and atmosphere. This is why the U.S. turned off the moitoring equipment on the West coast just after 3/11. No news is good news, right?

There is no feasible way to evacuate Tokyo, or the West coast of the U.S., or the entire Northern Hemisphere, for that matter. The only course of action is to keep people in the dark, keep the stories out of the media, obfuscate the truth and hope that your kids don't die of leukemia before you do.

The only peace of mind I derive from this is the knowledge that radiation poisoning does not discriminate between innocent cilvilians and corrupt corporatists, lying media executives and ineffectual leaders. It kills without regard to socioeconomic status. This is a shit sandwich we all get to enjoy.

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