Mizuho Forecasts Dollar to Drop to 106 Yen on Fed Cut

Article courtesy Bloomberg. Note the reference to the aftermath of LTCM on carry trades.
http://www.bloomberg.com/apps/news?p...refer=currency

I can't vouch for Mizuho's accuracy, but the article makes some good points.

I saw Mizuho's prediction on the Gaitame.com(the largest Japanese forex broker)site. The broker said only Mizuho seemed to set forth blunt opinion among Japanese banks(they forecast 112～118 yen).
But, think about it――even with the advent of stronger yen again, it seems to be unable to enhance the international use of the yen. Frankly, JPY is tricky to use. In Japan, brokerage accounts are not at liberty to transfer our own investment funds from forex market to equities market or commodities market etc in a short while. Therefore, even if we hold JPY, the best we can do is lowest-interest deposits domestically. Ultimately we will remain to aim for investment abroad.
Currently, markets tone is nervous, so now I am also churning and striving for rebound of sharp fall(short-term trading. not carry trade).

Re JPY as a vehicle ccy - curious as to how you see JPY in the long run if/when CNY becomes freely traded. A number of years back there was talk of JPY as a vehicle ccy, especially for trade in the ASEAN area; while that's not likely now, do you think it will be for the yuan?

Thank you for your writing. Recently, Japanese stocks don't seem to go hand-in-hand with Shanghai stock market(Japanese stocks work with foreign exchange market). I have ever heard overseas investors don't distinguish between Japan and China though...
About CNY(RMB), Mr.saka replied in oblique style to my question on Member's Lounge(thread:"hi, everybody, I'm a new man from China"). I recommend you to read his comment.
Um.....current China will not permit foreign pressure(like US) to revalue and free CNY in behalf of Chinese growth strategy, I think.