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USDJPY Collapses 350 Pips, Drags Japanese Stocks Down 700 Points
China's overnight destruction of $80 billion of eligible collateral from the great global carry trade has had destructive consequences on the massively crowded short JPY (long USDJPY) trade. Haviung already lost ground following the dismal downward revisions in GDP, USDJPY is down 350 pips from yesterday morning's highs (This is the biggest 2-day drop in USDJPY in 18 months.) and the Nikkei 225 is down over 700 points in the same period... Abe approval ratings are plunging-er.
USDJPY -350 pips below 118.50 - the biggest 2-day drop in 18 months (since GDP was revised lower)
as Nikkei collapses from over 18,200 to 17,500 in 2 days...
As the great BoJ/Fed handover begins to fade...
The Nikkei is +12% YTD now (in JPY) and USDJPY is up 12.5% - leaving USD-based NKY investors underwater still.
* * *
Did the downward revision to Japanese GDP straw finally break the back of the Central Bank Omnipotence camel?
Charts: Bloomberg
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"Help me, Abe-wan Kenobi, you're my only hope!"
And gold has a risk-rocket driving it toward 6000 year bubbleiciousness.
Oh, Noo!
I thought this was what the Abe wanted?
This is horrible! Unleash QE-zilla.
More likely a reaction to the oil price free fall than anything else,
but Abe still has a snowball's chance of pulling this out.
Old Charlie stole the handle
And the train, it won't stop going
No way to slow down
Oh, oh
I think Charlie might have been from Saudi Arabia.
"Wesa grant emeerggency powers to Chairman Yellan"
In JJA we trust.
"Help me, Abe-wan Kenobi, you're a big dope!"
There fixed that for you my friend.
Odd XUAUSD candle
https://www.tradingview.com/x/d821Zp7f/
Nice catch. That's normally the part where gold shits itself. But not today...
Somebody forgot to tell Santa that it's Christmas time.
Quicker elections called for...
I was wondering about "Abe approval ratings are plunging-er." Seems for the Japanese common man a little Yen strength might bring a little relief (but Mrs. Watanabe will be a little pissed off I suppose). Doesn't matter, though. 120 will fade in the rear view mirror once the election is over, and 140 will quickly follow suit.
Quicker elections called for...
Oh thank god, "elections", that'll make it better for sure...
Humpty Dumpt sat on a wall
Humpty Dumpty had a great fall
All the kings horses and all the kings men
Couldn't put Humpty together again.
Just sayin....
Now let's be fair.............truth be told they are probably just delaying PRECIOUS SANTA DOW 18k to a closer to xmas date. LOL.
Then again there's been an awful lot of talk about will there be 'santa' for weeks, all the while the market going up, as if it hasn't happened yet. It's possible Santa came early lol. Be interesting to see if santa gets shot out of the sky. Most likely retail got shit on all over today waiting on something that's already happened.
I feel like Obama is about to announce or do something really stupid again. Or maybe it is just time for this nonsense to finally end.
Oh, you mean like yesterday, the day before that, and the day before that...? ;)
"The Nikkei is +12% YTD now (in JPY) and USDJPY is up 12.5% - leaving USD-based NKY investors underwater still."
Or you could be a little smarter and invest in the Nikkei 225 via a currency-hedged fund like DXJ. Chart:
http://finance.yahoo.com/q?s=DXJ&ql=1
Hat-tip for this to Fonzannoon, who the Tylers should let out of the damned doghouse already.
only 600 more ES points to go (down)
your comment is true, but unfortunately the Tyler is a little confused about what hedging means.
http://www.zerohedge.com/news/2014-11-20/if-you-are-us-investor-who-bullish-japan-look-away
And paper gold up 3%. How is that possible? What is happening here?
Dollar taking a tumble - this isn't all Yen strength on usdjpy.
http://www.bloomberg.com/quote/DXY:CUR
That $10 note in your pocket is a paper Big Mac with large fries and a big Coke. Until one day it isn't.
Would you like to super size that?
Just now on my charts:
Gold spiking at 1236 ! 2.7 % change.
USDJPY crashing to back to 118 -2.1% change.
Huge and rare movement on FX. WTF ?
Read the Mylchreest article which was a sticker here for a few days until a couple of days ago.
When something as fundamental as Oil takes a great big shit, it will splatter everywhere and impact on everything.
Shit wipes away from some things without a trace. On other things it tends to stick and get absorbed into the fibres.
Oh yeah I get it short Gold and buy Nikkei, one word: diabolic !
And DAX under 9'800. Falling off a cliff...
https://www.youtube.com/watch?v=1lWJXDG2i0A
Moar.....free money......pleeze.....*wheeze*.....
Bought phys Gold in June from Perth Mint (I am in Australia). Today, I can sell back to Perth Mint for their shitty buy back price (96% of spot) and I will still turn a profit.
Buying premium, delivery charges and insurances covered, selling premium covered. Pure profit from phys in what (so far) has been one of the worst years on record for Gold sentiment.
Imagine what will happen when people start liking the stuff again!!
Lets see if the expired meow bounce will defend 118...
We have just been through this in October. To borrow a phrase from Aaron Rodgers: "Relax!".
Just like then, it looks like we can make some money by buying puts for about a week, untilt he central banks move in.
Please, please, PLEASE let this be the start of the Keynesian endpoint...
Not yet. Getting closer though
Everybody always finds a "reason" for FX to move; the simple truth is that USDJPY was crowded on the long side from Mrs. Wantanabe and all of her pals. Shakeouts are always part of the FX scenario; they come when the trade always get crowded and then the appropriate mouthpieces of government take over and take it to the extreme. Today's action in USDJPY is no different than all the others over the past 30+ years.
www.traderzoo.mobi
Forex Kong – A LOUSY SERVICE AND A THIEF
This is to warn EVERYONE as to doing any sort of business with Forex Trading with Kong, or what ever he/she/it bills itself. I signed up to the “service” in May of 2014, and once on the site, the person proclaiming themselves to be Kong was in a maelstrom of trades – all down.
I found his combination of ranting about the markets, along with fuzzy and not explained or thought out trades was amateur at best. In fact, as a veteran trader, I took each and every trade of his on one of my demo accounts, with this “Kong” not spelling out as to whether trades he emailed on “alert” were short, mid or long term, and the ensuing results were hilarious. ALL down. I have the charts, and alerts he/she/it sent and the times he/she/it sent them, and to say this “service” is even competent is a stretch.
I’d be happy to share these charts, trades ( I took screen shots of the demo account with the idiot Kong trades getting reamed) with anyone.
The REAL “fun” started when I canceled – or attempted to cancel, my less than one month old account with Kong. First, to sign up to the…service, I had to join PayPal, which I did NOT want to do. This Kong character cajoled me into doing so “It’s the only way I work” – something to that effect.
WELL…Kong and PayPal kept right on debiting me. I caught them. Kept right debiting me AFTER I CAUGHT THEM.
I have the emails, bank statements – all of it. The good thieves at Forex Trading with Kong know this, and can not refute one iota of what I wrote. They are arrogant, claim they “never had a refund” (gee…I guess so).
STAY AWAY FROM FOREX TRADING WITH KONG. BE FOREWARNED.
THE SERVICE IS ASININE, AND THEY STEAL YOUR MONEY.
JPHFOREX at Gmail dot com….I can back up everything I just wrote.
Hell, where I live, is thawing out.
looks liike this wants to shoot up to 125 now...the Yen ain't no safe haven any more its a pile of dogshit, think this does 120 and keeps going next time...
http://news.investors.com/ibd-editorials/120814-729614-china-tests-high-...
As the theory goes, it is now possible with the BOJ buying virtually all of it's own bond issuance and having nowhere else to go except open market purchases of equity or other financial instruments, that the BOJ is continually increasing the monetary base, but is actually now reducing M1 and M2 calculations of money supply and reducing velocity.
In other words, Japan may now be at a point where the more they buy (remove from the market into their own reserves) the more wealth/money they are actually removing from their own economy.
Japan is now a black hole of financial death with no escape.
The only thing they could do at this point, is simply give every man, woman and child that is a citizen of Japan like some fixed amount that is the equivilant of 50 grand or so. Truly debase the currency in the masses, thus reducing their own debt load relative to GDP. Then immediately begin raising rates back to a normalized level.
That will not happen though, so they will likely explode like many other governments have in the past.
"That will not happen though, so they [Japan] will likely explode like many other governments have in the past."
And we're talking about the 4th largest economy in the world (making it wholly unlike the Greece debacle...)