The morning started off with the ubiquitous JPY-carry spike pre-US-open and has now extended (post the 30Y auction) to the new normal 140 pips rise to break the magical 100 JPY level to the USD. It has been seven months since Shinzo Abe first hinted at his extreme policy prescription for his ailing nation. Since the start of October 2012, the JPY has lost 30% of its value and the FX-carry market's holy trinity of Aso-Kuroda-Abe can wave their initial "mission accomplished" banners this evening. Fifth time was the charm it seems as after four times trying and failing in the last month, USDJPY has just passed the 100 level for the first time since April 2009 - and while Abenomics lives on, it was initially 'designed' to bring the JPY back into line after its massive strengthening post the crash lows in 2009. Interestingly, USDJPY risk-reversals (from the FX option market) suggest traders are less confident that the devaluation continues apace. We shall see...
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