Disliked{quote} You say in your post that you may be simplifying things. Well let's see if I can simplify it further. Not sure how long you have been following the market's reactions to general sentiment, but what we have here with the Yen is based on risk appetite and risk aversion. The BOJ has finally successfully followed the Fed and launched extraordinarily loose monetary policy and that has added to the global risk appetite. However, the BOJ's efforts will all be undone as soon as the Fed starts tightening or as soon as the market sees that the Fed...Ignored
PipTrapper, thanks for the 101 - i am not from a financial background nor do i have a good macro understanding. I learn from these forums and from reading as widely as i can.
I see the risk-off dynamic and its consequences. Equities off life-support and they're done. The subsequent flight to safety will also have a domino effect as the knee-jerk reaction into bonds backfires and then lack of bank liquidity on their deposits becomes evident.
In the case of the Yen and Japan, I think like this: Japan has been gliding without fuel for years now. The demise of it's electronics market has only been propped up by its vehicle exports. Whichever way you look at it, Japan is shadow of it's former glory and the heritage of theYen as an illustrious symbol of the glory years is over and with it the "safe-haven" status which the Singapore Dollar has now usurped. The trade currencies of Asia used to be Dollar and Yen. But when it comes to the pivotal moment of global economic collapse, I think the Yuan will replace it as this has been a transition that has been delayed by the old economy and status quo.
Hence the Yen will not enjoy the safe-haven flows of yesteryear although Yen repatriation should be considerable and may very well delay UsdJpy downside.
cryptocurrency everytime
DHT, please tell me you're not in the suburbs, dude...
