I am back from vacation and found this interesting tidbit that could lead to further Yen strength over the next few days:
Sumitomo have announced they are looking at doing a rights issue next week (up to USD 8.6 bio equiv) of which 50% will be offered to non domestics. This deal is expected to close [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Japanese Yen 8 Comments »

The U.S. dollar has sold off significantly against the Japanese Yen over the past 2 trading days. It is nearing a very important support level. If it breaks that level, we could see a test and potential break of 95. Given that equities are pressuring USD/JPY lower, a “break” of the 95 [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Forex Technicals, forex blog, usd/jpy No Comments »

My good friend Rhonda Staskow has posted updated charts on the positioning of Japanese retail traders transacting through TFX, one of the largest FX brokers in Japan. According to their latest data, Japanese traders are turning net long USD/JPY, EUR/JPY and GBP/JPY after being net short in March. There are no [...]

Posted in 2009 japanese yen, Japanese Yen, forex blog, japanese retail positioning 2 Comments »

The Economist has a great image on which countries have the most debt as a percentage of GDP. Japan tops the list followed by Italy and the United States. Japan actually has 2x more debt than the U.S. which I find particularly scary and leads me to wonder if Japan could face a [...]

Posted in 2009 japanese yen, forex blog 18 Comments »

In my Daily Currency Focus on FX360, I talked about Why USD/JPY and Equities are Decoupling.
Lower Volatility is Driving USD/JPY Higher
When equities and USD/JPY are moving in different directions, we like to look at the commodity and Treasury markets for more clarity on investor sentiment. Interestingly enough, gold prices have [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, forex blog, usd/jpy 2 Comments »