Yen has retraced the entire runup after China reval.
Russ, you wrote you trade Yen and you are long Yen.
I'm also long Yen futures, luckily from near the bottom of the move (0.008850, that's around 113.8 for USD/JPY spotfx people), which was almost 2yr lows for Yen. So luckily, my trade is still green.
As I wrote before, I'm pretty sure that the -6% plunge during the last few weeks, was the work of the BOJ criminals, so they
1/ could have room to intervene, just in case the China reval caused some squeeze in the Yen-carry trade (in 1998 unwind of carry trade, Yen rose 7% in 2 days and 30% in a couple of months).
2/ cover. BOJ itself is massively short the Yen, being on the hook for $320bn worth of counterfeit money, which they printed for the 1Q2004 interventions.
How much longer can they afford to push Yen? Hoping/succeeding to cover those $320bn? ("Mr Yen", the former BOJ governing criminal, was quoted that "the USD/JPY 113 is a buying opportunity", obviously hoping to lure others to take the other side of their trade).
Commodities (using GoldmanSachs commodity index) are +40% YTD expressed in Yen. |
