Japan's Nikkei Is Showing Signs of a Larger Decline Coming | Forex Factory

  • Japan's Nikkei Is Showing Signs of a Larger Decline Coming

    From minyanville.com

    Markets usually require a push for a larger move -- whether up or down. They don't just run higher or crash lower without a reason or at least without the perception of a good reason. So, if we ask ourselves what that reason might be, there are many possibilities but overriding theme now seems to be a lack of further Central Bank quantitative easing. Given that these markets have flourished on the free money for so long, one would have to think that without more free money they will not fare as well. But the analysis has to include another piece of the puzzle and that's the economic health or lack thereof. Keeping ... (full story)

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Exodus
May 8, 2014 1:59pm
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AFAIK Japan is not backing-off the QE. If anything it is pressing the gas pedal.

So we have local Japanese money printing (weaker Yen), and external US dollar supply reduction (stronger US$). All of which means that probably the US stock markets will run semi-flat for a while, and the Japanese stock markets should go to higher strengths.

Usual caveats apply.
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