I think every single trader, newbie or not, tried to take advantage of Japan’s “economic recovery efforts” by shorting the yen in the last 4 months. There were so many opportunities to make good money every time Japan PM, Shinzo Abe, had something to say about his strategy to boost GDP growth.
We reached now a point where the world is asking if this chosen strategy, to weaken the yen, is not dangerous for the important economies as USA, China, Europe, and others. We just had a strange statement of G7 saying “nothing” but shortly after an unidentified official said: “The G7 statement was misinterpreted! The G7 is concerned about unilateral guidance on the yen. Japan will be in the spotlight at the G20 in Moscow this weekend.” That’s even stranger if you look at the US Treasury’s Undersecretary for International Affairs, Lael Brainard, that gave the Japanese administration a nod of approval in the way they have been handling their currency situation. Are u confused ? Because this is not everything: I red today an article where I found this: “In private, the US has been pressuring Japan's new government to refrain from mentioning the yen as it attempts to revive growth and end deflation. The US Treasury refused to comment.” Now I am realy confused !!!
To be honest I think there is a grain of truth in this “US pressure” because we have the Economic and Fiscal policy minister Akira Amari saying in one of his last speeches that it will be important to show their mettle and see the Nikkei reach the 13,000 mark by the end of the fiscal year (March 31) and he also said: “We want to continue taking (new) steps to help stock prices rise”. Well…dear traders…Japan stopped to mention the “yen” on their speaking but they did not stop (and I don’t think they will) to continue with their “weak the yen” policy and that’s why I say to have a look at the Nikkei index: The key index started rallying from around 8,600 points in mid-November when then-Prime Minister Yoshihiko Noda decided to hold a general election Dec. 16 that saw his ruling Democratic Party of Japan trounced by the LDP. Share prices have risen largely in response to the yen’s depreciation against other major currencies on expectations for aggressive monetary easing measures by the Bank of Japan since the LDP’s return to power. The Nikkei 225 stock average, which last week climbed to its highest level since September 2008, finished at 11,153.16 on Friday. Amari said the Nikkei’s recent surge translates into combined share appraisal gains of some ¥38 trillion among domestic corporations, including financial institutions.
I am long in this “fast and furious race” of Nikkei, with big hopes that “Tokyo’s drift style” will help me to win this race at the end of March with 13.000 "$ cash prize".
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