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  • Japan FinMin Aso: Hard To Understand Yen

Can someone please help me to answer this question? Why is JPY getting stronger? 1) Olympic cancelled. 2) Last developed country to go in lockdown 3) Gov't looking to weaken the currency 4) All market is on fire (safe haven?) 5)US Bondy yields are going up. What am I missing here? Is this just fake?
Copied from previous article, but would love to hear you guys out. Just let me know why this currency doesnt move
Quoting kingleeny
Copied from previous article, but would love to hear you guys out. Just let me know why this currency doesnt move
one answer.. the dollar.
It's in fear when people show what they truly value.
Yen is relatively strong than dollar
Quoting kingleeny
Can someone please help me to answer this question? Why is JPY getting stronger? 1) Olympic cancelled. 2) Last developed country to go in lockdown 3) Gov't looking to weaken the currency 4) All market is on fire (safe haven?) 5)US Bondy yields are going up. What am I missing here? Is this just fake?
Its temporary strong move.

JPY dealers are shorts, while JPY assets managers are very loaded as long.
Right now, its a dollar play, but soon JPY will get dumped hard
COT: The precious data ignored
Quoting kingleeny
Can someone please help me to answer this question? Why is JPY getting stronger? 1) Olympic cancelled. 2) Last developed country to go in lockdown 3) Gov't looking to weaken the currency 4) All market is on fire (safe haven?) 5)US Bondy yields are going up. What am I missing here? Is this just fake?
Understand how exposed the JPY is to the USD.

I believe that so may Japanese traders (government traders and their avatars have shorted the Yen to accommodate QE.

This current movement could be in response to selling the USD due to JPY over exposure.

The Japanese post office could be the major player?
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what does it matter? Buy Yen till 90 (probably the last time it will be below 100), then sell it
Risk aversion and carry trade activity used to prop up the value of yen. But now it is happening to hk dollars where interest rate is still at 1.2%. Borrowing cost in Japan is still lower than in US. Additionally, US injected just short of 3 trillion dollars into circulation whereas Japanese QE was delivered in a much moderate way.
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  • Posted: Apr 28, 2020 4:52am
  • Submitted by:
     Newsstand
    Category: Low Impact Breaking News
    Comments: 8  /  Views: 4,542