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Yen Flash Crashes... Again

Tyler Durden's picture


Timber time. Next up: another round of hopeless and very much helpless BOJ intervention. Because after the FX wars come the trade wars, and after the trade wars come the shooting wars.


All currencies:

Charts: Bloomberg


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Fri, 09/09/2011 - 11:50 | 1651024 Clorox Cowboy
Clorox Cowboy's picture

Ok, that was actually my fault...why doesn't CRTL+Z seem to be working today in E-Trade?

Fri, 09/09/2011 - 13:17 | 1651496 Fukushima Sam
Fukushima Sam's picture

Japan is royally fucked.  They bet their environment on nuclear energy and lost.  That's a big problem on an island.  They Yen really has nowhere to go but down.

Fri, 09/09/2011 - 13:31 | 1651547 Ahmeexnal
Ahmeexnal's picture

DXY at multimonth high.
Just as expected. The USD's last rally.

Fri, 09/09/2011 - 17:46 | 1652613 Highrev
Highrev's picture

Johnny-san Fat Finger. (or Fat Finger-san as I've coined before)


At least we know where the real trouble is. (or part of it anyway)

Sat, 09/10/2011 - 05:37 | 1654004 The Alarmist
The Alarmist's picture

Except that in this case "down" means it is getting stronger.

Fri, 09/09/2011 - 11:51 | 1651027 Cdad
Cdad's picture

Good!  The US needs a trade war with China NOW!  

Fri, 09/09/2011 - 12:07 | 1651129 Bastiat009
Bastiat009's picture

I am going to disagree with you. The last thing the US needs is yet another war. What the US needs is to start producing stuff ... I don't know what kind of stuff because if I did I would invest my work, time and money in the manufacturing of that product. 

Chinese are willing to work for peanuts because peanuts is better than nothing. The US, like the rest of the Western world, has failed to acknowledge that other countries and people could do very well too.

One of the things the US government could do is offer a green card to all the foreigners who graduate college (or complete a PhD ...) instead of having a green card lottery that an Ukrainian truck driver can win. Seriously, what the economy needs is more entrepreneurs, not more truck drivers. (I have nothing against Ukrainian truck drivers, it was just an example).

Fri, 09/09/2011 - 12:13 | 1651156 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

You just pissed off all of my brothers in the "Rainbow Trucker Brigade" my friend.

Fri, 09/09/2011 - 14:03 | 1651715 Cdad
Cdad's picture


Exactly......exactly why the trade war needs to go forward.  

A.  I am an American SICK TO DEATH of watching jobs go to China

B.  Poorly made and cheap Chinese goods encourage mindless materialism [and requires high replacement rates]

C.  The Chinese currency manipulation has cost this nation untold dollars.


50% tariffs on all imported Chinese goods.....NOW!  Bring it!

Fri, 09/09/2011 - 14:48 | 1651937 Blankman
Blankman's picture

"What the US needs is to start producing stuff ... I don't know what kind of stuff because if I did I would invest my work, time and money in the manufacturing of that product."


It has already been done that is the problem - booze and porn.  What else do you really need?

Fri, 09/09/2011 - 16:21 | 1652360 exiledbear
exiledbear's picture

The Chinese elite are willing to be the lowest cost bidder on everything because if they don't have something approaching full unemployment, the whole country goes into anarchy.

And if there's one thing they fear more than anything else, it's anarchy. It's sorta the way Republicans view gay sex. Well ok, maybe not.

Fri, 09/09/2011 - 12:11 | 1651150 Kuri
Kuri's picture

Please, China : do me a favour. Get rid of all your USD cash reserves now. And don't forget the US treasuries. Y'know ? Useless paper...

Fri, 09/09/2011 - 12:57 | 1651410 HITMAN56
HITMAN56's picture

I hear if I was going to be in Tokyo exchanging my USD for would be a good time or no?

Fri, 09/09/2011 - 11:54 | 1651029 TruthInSunshine
TruthInSunshine's picture

The BOJ will finally master the art of Yen devaluation after all manufacturing is offshored from Japanese soil, in which case, it will be not only pointless, but incredibly destructive.

Yes, you can now order your hecho en Mexico Toyota Yaris (formerly made in Japan) and hecho en Mexico Honda Fit (formerly made in Japan), as well as many, many other made in the U.S., Poland, Mexico and Brazil autos that had been formerly made in Japan.

Fri, 09/09/2011 - 11:54 | 1651051 vast-dom
vast-dom's picture

Irradiated manufacturing is bullish.

Fri, 09/09/2011 - 12:16 | 1651177 Oh regional Indian
Oh regional Indian's picture

I was just going to say, exactly. Probably better off buying Hencho en Mexico today.

I wonder what would happen if I walked into a Toyota/Honda dealership with a radiation detector here in India....hahhh, probably be arrested for disturbing the peace as it goes off the charts.


yucks in America!

Fri, 09/09/2011 - 12:44 | 1651340 Hephasteus
Hephasteus's picture

0.07 seconds. That split second of time is so minuscule that the human brain scarcely could register it, yet the power going out at a Toshiba manufacturing plant might be all that it takes to sink the world’s flash memory supply by 20% for the next year… and send the price of your next smartphone or tablet skyrocketing.

Fri, 09/09/2011 - 11:51 | 1651031 agNau
agNau's picture

Dollar safety push is on.

Fri, 09/09/2011 - 11:51 | 1651032 Segestan
Segestan's picture

Rearm Japan... take out the Chicoms.

Fri, 09/09/2011 - 12:59 | 1651421 Zeilschip
Zeilschip's picture

Rearm? We were in war with them last time they had arms you know this right dimwit?

Fri, 09/09/2011 - 11:51 | 1651034 Irish66
Irish66's picture

keep a close on the swisseee

Fri, 09/09/2011 - 11:52 | 1651036 GeneMarchbanks
GeneMarchbanks's picture

Dear Yen,

Please stop.

Your friend, Euro

Fri, 09/09/2011 - 11:52 | 1651037 Seize Mars
Seize Mars's picture

Well, the Dollar crashed, in Yen terms. Right?

Fri, 09/09/2011 - 11:52 | 1651039 Atomizer
Atomizer's picture

That algorithm is going to have to take a 10 minute timeout. Your a bad bad algorithm.

Fri, 09/09/2011 - 12:11 | 1651152 fuu
fuu's picture

But where will the liquidity come from?

Won't someone think of the liquidity?

Fri, 09/09/2011 - 11:52 | 1651043 mvsjcl
mvsjcl's picture

Gold chart?

Fri, 09/09/2011 - 11:52 | 1651045 Comay Mierda
Comay Mierda's picture

"I know not with what weapons World War III will be fought, but World War IV will be fought with sticks and stones." - some guy

Fri, 09/09/2011 - 12:14 | 1651164 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Bill Moyers, no?

Fri, 09/09/2011 - 13:02 | 1651437 Zeilschip
Zeilschip's picture

Al Einstein.

Fri, 09/09/2011 - 16:23 | 1652373 DosZap
DosZap's picture


Leave out the NOT, and sounds like Einstein.

Fri, 09/09/2011 - 11:52 | 1651046 monopoly
monopoly's picture

Starting to get a little scary now. Thank goodness we have Nancy and Harry to make it better.  :)

Fri, 09/09/2011 - 11:53 | 1651048 toady
toady's picture

Dow 10k?

S&P 1k?

No euro close bounce today!

Fri, 09/09/2011 - 12:09 | 1651140 Bastiat009
Bastiat009's picture

Turn the charts upside down and you'll see a bounce toward the euro close.

Fri, 09/09/2011 - 11:56 | 1651049 Quintus
Quintus's picture

Taking into account only the frequency and severity of interventions in all markets (Seems to be a daily occurrence now) we MUST be in the very last days of the system.


Fri, 09/09/2011 - 11:59 | 1651086 Bam_Man
Bam_Man's picture

As Jesse very aptly put it, in this environment "It is almost a curse to know anything these days".

Fri, 09/09/2011 - 12:34 | 1651289 Conax
Conax's picture

 "In much wisdom is much grief: and he that increaseth knowledge increaseth sorrow."  Ecclesiastes 1:18

It was always thus.

Fri, 09/09/2011 - 11:54 | 1651056 oogs66
oogs66's picture

its just a fast crash, not a flash crash...those come back :)

Fri, 09/09/2011 - 11:54 | 1651057 Zero Govt
Zero Govt's picture

"...and after the trade wars come the shooting wars"


Yes but can 3 illegal wars America afford any more bullets?

Can Benny print anymore bucks and buy yet more US Govt Timmay Turds??

Will any military contractor take them as payment???

...tune into the next exciting episode of 'Benny and Timmay Get Analised XII' 

Fri, 09/09/2011 - 12:14 | 1651161 Piranhanoia
Piranhanoia's picture

Seems more likely we will be a target than an instigator,  at least on tv.

Fri, 09/09/2011 - 12:15 | 1651168 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Dude, 3 illegal wars? I thought were up to 7?

Fri, 09/09/2011 - 16:31 | 1652403 Muddy1
Muddy1's picture

Hell, let's start selling War Bonds.

Fri, 09/09/2011 - 11:56 | 1651065 Bam_Man
Bam_Man's picture

Yen carry trades unwinding.

This is what the Swiss have to look forward to a couple of years from now.

Fri, 09/09/2011 - 11:56 | 1651067 Salty Dawg
Salty Dawg's picture

Dow drops 70 plus points as Obama speaks. as usual.

Fri, 09/09/2011 - 11:56 | 1651069 laomei
laomei's picture

Gold's gonna reach parity with the dow one way or another....

Fri, 09/09/2011 - 11:57 | 1651070 scratch_and_sniff
scratch_and_sniff's picture

This is fucked up...really fucked up.

Fri, 09/09/2011 - 11:58 | 1651082 P the P
P the P's picture

All looks so impressive BUT it's been 76.50/78.00 for a month and that's not making anyone rich

Fri, 09/09/2011 - 11:59 | 1651085 riskarb
riskarb's picture

50 pips now qualifies as a flash crash?

Fri, 09/09/2011 - 12:00 | 1651090 HUGE_Gamma
HUGE_Gamma's picture


Fri, 09/09/2011 - 12:03 | 1651109 anarkst
anarkst's picture

"Because after the FX wars come the trade wars, and after the trade wars come the shooting wars."


And this is one of the great lessons of history.  Greed kills!

Fri, 09/09/2011 - 12:12 | 1651144 Paper CRUSHer
Paper CRUSHer's picture



Things are turnin' pretty fugly on the last trading day of the week so i suggest we open the cocktail cabinet and make a refeshing drink to cool off.I recommend my ol' personal favourite recipe called the Grand Slam:

1qt 100%proof bourbon

1/2 qt scotch

3cl cognaic with orange peel

1/4qt clorox

1 teaspoon of castor oil

1 cap. ex.strong mouthwash

garnish with lemon and crushed blackpepper corns

{Best served shaken not spilled}.



Fri, 09/09/2011 - 12:16 | 1651180 Piranhanoia
Piranhanoia's picture

I think I would rather have a pan galactic please.  They don't identify what is in it,  and you know Janx isn't talking.

Fri, 09/09/2011 - 12:17 | 1651185 A.W.E.S.O.M.-O 4000
A.W.E.S.O.M.-O 4000's picture

Or you could take off your bra and panties, stop being a pussie and have a single malt scotch neat.

Fri, 09/09/2011 - 14:27 | 1651836 MrBinkeyWhat
MrBinkeyWhat's picture

Till you got to the ChloroxTM and Castor Oil I was on team. You making more than one batch?

Between TS Lee dumping toxic oil sludge, and other verious calamities, vodka is sounding pretty good to me. memories...low cost...Later!

Fri, 09/09/2011 - 12:15 | 1651169 slewie the pi-rat
slewie the pi-rat's picture

when the SNB devalued the swissie to support the euro, it thought it would "cap" the USD's rise, and said so

i've never traded fx, even for "fun" and am still learning about how the crimex works too

anyhow, i was wrong, it seems, and i hope anyone who was smart enuf to fade my ignorant call is rolling in profits and laughing his/her/Y/C's(?) ass off! 

people make fortunes fading slewie!

what i see now, is that (perhaps?) only the "pair" is directly effected in the long run, and other "pairs" w/ the CHF......................???.............

...............jeeeeeez!  got PMs????

Fri, 09/09/2011 - 12:40 | 1651314 Yen Cross
Yen Cross's picture



Point being, 78 is break even for exporters...

Fri, 09/09/2011 - 12:47 | 1651358 Yen Cross
Yen Cross's picture

I like you!

Fri, 09/09/2011 - 12:21 | 1651218 Confucious 222
Confucious 222's picture

This was a dollar flash crash in terms of Yen, not a Yen flash crash.

Okey dokey?

Fri, 09/09/2011 - 12:55 | 1651398 DrJRiddle
DrJRiddle's picture

Thank you, that's the way I read it too and was starting to wonder if I was losing my marbles.  $1 was worth 77.8 yen and fell to be worth only 77.3 yen.  Yen stronger, doesn't take as many to buy a dollar as it did this morning.  

Fri, 09/09/2011 - 12:23 | 1651231 shazbotz
shazbotz's picture


Fri, 09/09/2011 - 12:29 | 1651266 La Belle Vie
La Belle Vie's picture

This is like merry go round , US prints money , then China , EU and Japan , welcome  the new kid on the block - Swiss  , WHO'S NEXT ?!?

Fri, 09/09/2011 - 12:39 | 1651311 tocointhephrase
tocointhephrase's picture

They call it (Great) Britain

Fri, 09/09/2011 - 13:00 | 1651430 Yen Cross
Yen Cross's picture

Correct! Thank You!

Fri, 09/09/2011 - 13:00 | 1651431 alexanderstollznow
alexanderstollznow's picture

the ECB has sterilized all its bond purchases, and its last rate move was a hike.

Fri, 09/09/2011 - 12:43 | 1651332 newstreet
newstreet's picture

I just bought usd/jy down here. 

Fri, 09/09/2011 - 12:46 | 1651350 Yen Cross
Yen Cross's picture

 You will { Kill} Me. I'm long GBP above the 60 level. I respect the Sovereign DUTY!

Fri, 09/09/2011 - 12:51 | 1651381 Yen Cross
Yen Cross's picture

 Slewie ,You kick ARSE'

Fri, 09/09/2011 - 12:56 | 1651404 Yen Cross
Yen Cross's picture

You call it ( Renbinbre) I call it  YUAN!

Fri, 09/09/2011 - 12:57 | 1651407 alexanderstollznow
alexanderstollznow's picture

that move shown on the chart in the lead story is hardly a "flash" or a "crash".  it is 70pts in total, and took 40 minutes, a fact neatly disguised by compressing the chart so much.  given the nature of the day's news, and the CHF safe haven option now shut off, i think it is clear enough that what that chart really shows is a shift from EUR to JPY to escape risk.

Fri, 09/09/2011 - 13:03 | 1651443 adr
adr's picture

The yen is back up to 77.40 now. Stll doesn't matter. My company has been fucked since 90 yen per dollar. It is so great when you lose 30% in currency conversion only.

See I got to buy my product from Japan in dollars and sell it here. The exact opposite of the great sell abroad and report sky high profit weak dollar trade.

Nobody actually wants to sell a product in the USA right now.

Fri, 09/09/2011 - 13:35 | 1651565 Abitdodgie
Abitdodgie's picture


Fri, 09/09/2011 - 13:49 | 1651650 Yen Cross
Yen Cross's picture

fwiw i DID WELL ON THE sWISSY THING.  Yen is ? End of story.

Fri, 09/09/2011 - 14:52 | 1651960 robertocarlos
robertocarlos's picture

Sell Hawaii and Alaska to China. Then annex Canada. Then enjoy a balanced budget.

Fri, 09/09/2011 - 16:37 | 1652429 DosZap
DosZap's picture



Alaska is loaded with EVERY natural resource needed by Amurika.......only the fool, er'only a FOOL would do a deal like that.

Now New York,  Upper East coast, D.C.,  hell yeah, lets make a deal.

We will take Canada though,( I highly doubt they would want part of this,besides they still have to go thru their housing meltdown also),plus their Health Care system is so WONDERFUL (unless you have  breast cancer,need a hip replacement, or knee, etc,etc,etc, and are trying to get screened before you get it),medicine is cheap, just can't get to a Dr. to get a scrip, their all here 9 mos out of the year.

(of course our's if Owhamma Care doesn't get dumped, wiull be no better),wonder where Peelosi will palstic surgery, and botox?.

Couple of years back I heard, read an article that the city of Philadelphia had more MRI machines than the entirety of Canada.

They can have Hawaii,have to fight the owners though again, the Japanese.

Fri, 09/09/2011 - 17:31 | 1652582 KingdomKum
KingdomKum's picture

Being from Philly, I can attest to that  .  .  .  

runny nose, get an MRI

Sore throat, get an MRI

upset stomach, get an MRI   



(Obammycare at its best  !!!)

Fri, 09/09/2011 - 19:35 | 1652921 pappyhlace
pappyhlace's picture

geez this is EXACTLY like 2008...

better have ur armageddon plays on, or be in cash cuz this is gonna be one hell of a ride

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