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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: chirodoc who wrote (917)	4/19/1998 8:10:00 PM
From: Zardoz	Read Replies (1) \| Respond to of 3902

If nature has taught us anything, it's that sharks attack when they smell blood. In the last two weeks, we've seen the Japanese CB buy Yen through the US. We witness massive bond deals with the US and German treasuries. Put it together and the currencies traders know that the Japanese YEN is vulnerable. They will not stop, I wouldn't, would you? The real attack on the currency may not occur until after April is over, due to derivative currency swaps which usually occur on the end of the month. {not currency options/futures} If Japan wishes to grow, they would best devalue there currency by 25%. This would stimulate exports, and drive up imports. I still expect to see the YEN around 165, by AUG. This mau cause the Nikkei to climb based on currency equaliztion of foreign assets, but it would only cause further denial later. Rember this, at post war the YEN was near 650 Y/USD so it may have found it's low point, and is now climbing to a more even point. PS: This is far from over, it's only just begun. Places like British Columbia/Canada; are suppose to be in near reccession now. So if that spreads you may see a further currency crisis occur in Canada... Which will spread to USA. And thus the US dollar will drop, and Gold will rise. I see a stock market crash coming by AUG, unless {and this is the biggy}: Japan floats bonds to 5%.... it aint going to happen, if they want to protect the Nikkei.