JPMorgan Says Japan Inc. Must Prepare for Yen Below 100 a Dollar

JPMorgan Says Japan Inc. Must Prepare for Yen Below 100 a Dollar

From bloomberg.com

JPMorgan Chase & Co. is making two contrarian calls: First that the yen will strengthen toward 100 per dollar and second that such a rally won’t destroy the world’s third-largest economy. Tohru Sasaki, Tokyo-based head of Japan markets research, sees a gain to 110 next year from about 121 now, the most bullish among around 60 forecasts compiled by Bloomberg. While Sasaki sees the equilibrium exchange rate at “below 100,” he doesn’t see that as spelling the end for the recovery in corporate profits. “What investors like to hear is that the yen is weak and stocks are up -- but if everyone’s constantly ... (full story)

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Comment #1
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Dec 24, 2015 1:28am Dec 24, 2015 1:28am

hjkl185
| Joined Sep 2010 | Status: Member | 79 Comments

Not unless the Japanese government want it so. Never, never underestimate the resolute nature of the Japanese. Yes the FX market is large but so are the Japanese printing presses! They will dictate the value of the Yen and only if it is desirable for them to have a stronger yen will the Yen rise. Best policy is to listen to the government of the day and read between the lines, they will give a clear indication as to where the want the currency.

Comment #2
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Dec 24, 2015 4:20am Dec 24, 2015 4:20am

momochi
| Joined Aug 2013 | Status: eating smarties | 78 Comments

fair play to them, i have no intention in taking any long term usd/jpy longs around these levels - there is enough conflict going on to instigate a safe haven run in the new year. no bias for me.

Do what's right for you

Comment #3
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Dec 24, 2015 8:12am Dec 24, 2015 8:12am

Rtm
Joined Jan 2011 | Status: dump and pump | 913 Comments

JPY is toilet paper unless the world goes into crisis then we can easily see it under 100

All posts are my personal opinion

Comment #4
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Dec 24, 2015 12:41pm Dec 24, 2015 12:41pm

glenngie
| Joined Nov 2009 | Status: Member | 1324 Comments

predictions of 125 and above not too long ago.....have a little correction going and here comes the flip flopping..

Comment #5
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Dec 24, 2015 3:08pm Dec 24, 2015 3:08pm

Temujin
Joined Dec 2013 | Status: Member | 46 Comments

Abenomics will become very unpopular with USD/JPY above 125.

Be humble or be humbled.

Comment #6
Quote
Dec 24, 2015 4:58pm Dec 24, 2015 4:58pm

bloodpoodle
Joined Dec 2010 | Status: Member | 112 Comments

If stocks come unglued 1.10 is very do able.. As traders will be forced to buy back yen they have borrowed. Would need to see all yen crosses reversing, not just u/j. The more Boj prints.. the less effective it will be.. That's why they know this and aren't turning up the heat anymore...

The only system that will work is one designed by and for yourself.

Story Stats

Posted: Dec 23, 2015 8:48pm
Submitted by:
Newsstand

Category: Fundamental Analysis

Comments: 6 / Views: 3,411