Japanese Yen's Caution Amid USD/JPY Trends and US PCE DataThe Japanese Yen continues to exhibit relative strength amid hawkish expectations from the Bank of Japan (BoJ). Bets on a series of Fed interest rate cuts in 2024 are dampening the USD and weighing on USD/JPY. Bearish speculators are becoming cautious, eagerly awaiting the release of the US Personal Consumption Expenditures (PCE) Index data later this Thursday for fresh market impetus.
From a technical perspective, USD/JPY has shown potential for a recovery below the 100-day Simple Moving Average (SMA), signaling caution for trend-following traders. This indicates that daily chart oscillators are deeply entrenched in negative territory but still far from oversold levels. Conversely, this suggests that the path of least resistance for spot prices remains downward, and any meaningful recovery attempts could be viewed as selling opportunities.
Meanwhile, Wednesday saw the USD/JPY touch multi-month lows around the 146.65 region, seemingly defending immediate weakness. Below this level, USD/JPY could swiftly push the downside momentum towards the psychological 146.00 mark. On the flip side, the 147.30-147.35 region may act as an immediate barrier ahead of the high overnight volatility, around the 147.90 area and the 148.00 mark. Any further upward movement may attract new sellers and remains constrained near the strong horizontal support-turned-resistance level at 148.30.
In summary, caution prevails in the face of the Japanese Yen's bullish trend, with the focus shifting to the US PCE data for potential market catalysts. Technical indicators suggest a bearish bias for USD/JPY, with key support and resistance levels influencing the near-term trajectory.
JPYUSD
USD/JPY Hits Six-Week Low Near 148.50, Faces Key SupportThe USD/JPY pair remains under selling pressure for the fourth consecutive day, reaching its lowest point since October 4 during the Asian trading session on Tuesday. However, the spot price has slightly rebounded in the past few hours and is trading around the 148.00 level.
USD/JPY continues to trade near its lowest level in six weeks, extending losses to around 148.90 in the early European trading session on Monday. The key level of 148.50 emerges as immediate support, aligning with the Fibonacci retracement level of 23.6% at 148.49. The 14-day Relative Strength Index (RSI) below 50 signals a bearish sentiment, potentially inspiring bearish moves towards the support zone around 146.50, followed by the Fibonacci retracement level of 38.2% at 146.37.
Moreover, the Moving Average Convergence Divergence (MACD) line is positioned above the centerline, showing divergence below the signal line, often indicating a downward price trend. This configuration suggests that the short-term moving average (MACD line) is moving further away from the long-term moving average (signal line) in a downward direction.
On the flip side, the psychological level at 150.00 may act as a significant barrier, corresponding with the 9-day Exponential Moving Average (EMA) at 150.34. A breakthrough above this level could support a USD/JPY rebound towards last week's high at 151.90.
What Next For The Yen?In Karate, offense is the best form of defence. The BoJ knows it. Japan faces a raft of economic headwinds which shows up in Yen’s performance.
The BoJ intervened strongly last year to support the currency when it skirted around current levels. Yen is hovering at those levels again. BoJ is anticipated to act. Such interventions typically mark the bottom.
This paper explores recent economic data to analyse the potential for monetary policy changes by BOJ.
JAPANESE MACROECONOMIC CONDITIONS HAMPER YEN FROM STRENGTHENING
Starting September, the Yen has trended lower relative to the USD among currency majors.
The Yen has weakened the most. As described previously , BoJ’s aims to kickstart the economy onto a high growth trajectory to exit decades of painful deflation.
Recent macroeconomic data indicates weakness. This reaffirms the need for continued loose monetary policy. However, a frail Yen poses a different type of challenge for the BoJ with higher import costs for fresh food and fuel.
This leaves the BoJ in a predicament between loose monetary policy and intervention to support the Yen. What does recent inflation, GDP, and wage data point to?
Inflation
Inflation declined M-o-M in September. CPI cooled to 2.8% falling below 3% for the first time in a year. Importantly, Japan’s producer prices are now below 2% in a sign that inflation might have peaked.
Consumer prices will fail to prevail above 4% for long with input prices moderating. The BoJ expects inflation to persist until March next year at current levels and to cool towards target rates in the following 12 months.
GDP Growth
The Japanese economy shrank 2.1% YoY in Q3. This is far below expectations of 0.6% decline and a sharp slowdown from +4.5% growth in Q2. Slow economic growth makes economic stimulus essential to sustain it.
Wages
Nominal wage growth continues to decline. Real wages are even more concerning. Wages have declined for the last 18 months when adjusted for inflation.
Next Shunto negotiations are set to complete by mid-Jan 2024 with outcome remaining uncertain. The BoJ highlighted that wage uncertainties and price-setting behaviour pose upside risk to prices.
Meanwhile, high inflation will keep impacting real wages, affecting people's ability to spend.
THE BANK OF JAPAN IS STUCK BETWEEN A ROCK AND A HARD PLACE
At the October monetary policy meeting, the BoJ announced changes to the bond yield cap. The Yield Curve Control (YCC) policy and range were kept unchanged.
However, a small modification was made to change the 1% JGB yield cap from a rigid one to a loose reference. These changes hint at BoJ setting itself up for the eventual roll-back of the YCC policy altogether.
Next BoJ policy meeting is set for December 19th. The BoJ will likely maintain stimulus and hold rates low amid feeble consumer & business spending.
The policy change will be through YCC dismantling, impacting the JGB market. It will require careful planning and deft timing.
Meanwhile, the BoJ may intervene to stem continued Yen weakness. The officials have expressed this sentiment over the last two weeks via warnings for participants shorting the Yen over the past two weeks.
Japan’s Ministry of Finance (MoF) intervened three times last year, injecting USD 68 billion to support the Yen when it was trading near 150/USD. These interventions, unannounced, led to sharp and unexpected currency moves.
Unlike previous exchange rate-based interventions, the BoJ’s current predicament revolves around volatility and public perception.
Reuters reports that if Japan aims to prevent yen appreciation, the MoF will issue short-term bills to raise Yen, which is then sold in the market to weaken the currency. Alternatively, to curb Yen depreciation, authorities will tap into Japan's FX reserves, exchanging dollars for the Yen.
In recent weeks, Japanese authorities have issued warnings and expressed readiness to intervene as the Yen continues to weaken, despite a moderating USD.
Masato Kanda, Japan's top currency official, emphasized the urgency of their judgments and the potential for intervention, resonating with rhetorics used a year ago.
MIXED SIGNALS FROM CURRENCY DERIVATIVES MARKETS
Although asset managers are not positioned as net short as they were in late-September, they increased their net short positioning (weakening Yen) last Tuesday. Similarly, leveraged funds also increased net short positioning sharply last week.
Options markets contrarily signal strength in the Yen. P/C ratio for CME Japanese Yen Options (JPU) is 0.42 implying two puts for every five calls. JPUs are quoted with the Yen as the base currency so call options express a view of the Yen strengthening.
Moreover, bullish bets have increased heavily over the past week. Specifically, nearest monthly and weekly contracts (JPZ3 and WJ4X3) show Yen strengthening in the near term. Bullish bets in December options outnumber bearish bets by three times.
Although put open interest (OI) is concentrated near current levels with the highest OI at 0.0066 (151 in USD/JPY), call OI is more spread across with a large OI at strike of 0.0069 (145 in USD/JPY) which has ballooned over the last week. This signals that options market expects Yen strengthening by next month.
Finally, implied volatility on JPU is near its lowest level since March 2022.
Source: CME CVOL
Options skew on JPU is close to one, indicating that premiums on calls and puts are equally priced. Convexity remains elevated signalling investor interest in OTM options suggesting likelihood of sharp moves ahead.
HYPOTHETICAL TRADE SETUP
Given 12-month low implied volatility, a position in JPU can yield cost-effective protection against sharp Yen moves.
Alternatively, with the anticipated stability in Japanese interest rates, a short futures position in CME Japanese Yen futures, as previously discussed in a paper , is a viable approach to capitalizing on Yen's expected weakening. We can tap into JPU to safeguard this position against unforeseen risks of yen strengthening from BoJ intervention.
Furthermore, CME offers weekly options for Japanese Yen futures, expiring from Monday through Friday of the week. This enables investors to attain short-term exposure on a more focused scale, accompanied by lower premiums compared to monthly options.
A long call option position in JPUZ3 (expiring on December 8) would benefit from a BoJ intervention.
The trade setup consists of an entry at a strike of 0.0068 (JPY 147.0588) in JPUZ3 call options. These options are at a delta of 25 and expire in 30 days providing a good trade-off between low premium and adequate exposure to the underlying.
As of settlement on November 17th, premium for these options stood at USD 245 at an implied volatility of 8.26%.
Source: CME Options Calculator
The position breaks even at 0.00682 (JPY 146.6275) and turns profitable when (a) underlying futures price increases above strike price, and/or (b) implied volatility increases.
Source: CME QuikStrike
MARKET DATA
CME Real-time Market Data helps identify trading set-ups and express market views better. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com
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JPY Futures aggressive Big deal was detectedExtremely Aggressive Yen Call Spread Placed on Nov 17. But, It is crucial to comprehend that the purchaser of a forceful spread doesn't anticipate the price reaching its target zone. Instead, he simply require strong movement towards the price zone to earn X2 the amount or more. We will monitor the participant's conduct further to grasp his intentions and exit plan from the market
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"USD/JPY Holds Near Yearly Highs, Trading Around 151.70"The USD/JPY pair regains positive momentum, partially reversing significant losses from the previous day, returning to the 150.15 zone, the week's lowest level. Intraday buying activity intensified after Japan's GDP print fell below expectations, pushing the spot price to new daily highs. The USD/JPY exchange rate fluctuates around 151.70 during the Asian trading session on Tuesday.
The USD/JPY pair maintains its yearly high and has the potential to surpass these levels if the U.S. Dollar (USD) successfully halts recent losses. However, the greenback is facing hurdles from the volatile yields of U.S. Treasury bonds. At the time of writing, the yield on the 10-year U.S. Treasury bond hovers around 4.63%.
USD/JPY Recovers from Recent Losses, Hovers Around 150.50"USD/JPY rebounds from recent losses observed in the previous session following weaker-than-expected US inflation data. However, the pair trades slightly higher around 150.60 in Asian trading on Wednesday. The USD/JPY exchange rate fluctuates around 151.70 in Tuesday's Asian session. The pair holds near yearly highs and has the potential to surpass these levels if the US Dollar (USD) successfully mitigates recent losses. Nevertheless, the greenback faces challenges from volatile US bond yields, with the 10-year Treasury yield hovering around 4.63% at the time of writing.
USD/JPY Extends Upside Momentum Beyond 151.00 Level The USD/JPY pair continues to trade positively for the sixth consecutive day during the early Asian trading hours on Monday. The upward movement is supported by higher US Treasury bond yields and hawkish comments from Federal Reserve Chair Jerome Powell. The pair is currently hovering around the 151.70 mark, marking a 0.10% increase for the day.
USD/JPY has sustained its winning streak, trading above 151.40 in early European trading on Friday. Unexpectedly hawkish remarks from Fed Chair Jerome Powell had a significant impact, boosting US Treasury bond yields and strengthening the US Dollar (USD) against the Japanese Yen (JPY). However, the Japanese government may consider interventions to limit the upward momentum of the USD/JPY pair in response to these developments.
Powell's statement at the International Monetary Fund (IMF) event on Thursday expressed concerns that the current policies may not be sufficient to curb inflation. This sentiment led to an increase in the US Dollar Index (DXY), fluctuating around 106.00, with the 10-year US Treasury bond yield at 4.62% at the time of writing.
Despite strong tightening policies from major central banks, the Bank of Japan (BoJ) maintains its accommodative stance. BoJ Governor Kazuo Ueda stated on Thursday that the central bank would cautiously approach exiting extremely loose monetary policies to prevent significant bond market disruptions.
However, the Japanese Yen continues to face pressure as the plan to exit extremely loose policies may be delayed due to lower wage increases. Reasonable wage growth is considered a crucial factor for the Bank of Japan to contemplate an exit from prolonged loose monetary policies.
Market participants closely monitor Fed's Logan speech and the preliminary Michigan Consumer Sentiment Index for November, seeking signals to identify trading opportunities in the USD/JPY pair.What do you think about this pair?
Japanese Yen Nears 33-Year Low Amid Powell's Rate Hike SignalThe Japanese yen faced rapid depreciation today, approaching levels not seen in 33 years, following signals from Federal Reserve Chairman Jerome Powell that interest rate hikes may continue amid concerns about persistent inflation. The yen traded at 151.44 against the US dollar, showing a slight 0.06% increase from the previous session.
On Thursday, Powell reiterated hawkish views on interest rates, challenging market expectations that had predicted rate cuts in 2024. His comments underscored doubts about achieving the Fed's 2% inflation target with the current policy framework, leading the market to reconsider the potential for rate cuts in mid-2024 from June to July.
This stance contributed to the yen's worst performance since August, with a monthly decline of 1.42%. The currency's notable slide over the past month hit a one-year low of 151.72 against the dollar on October 31 and is now approaching levels not seen since 151.96.
The sharp decline of the yen has drawn the attention of Japan's Ministry of Finance (MOF), raising growing concerns about the need for intervention in the currency market to stabilize the yen and minimize potential impacts on the Japanese economy. The MOF closely monitors these developments as currency exchange rates hover near a crucial level that previously prompted official action.
USDJPY: Shorting NowNot sure if this is the big short or not yet, but looking at price action it's been a jog up to this point, rather than a sprint, this tells me we're fine to short until at least the ascending dynamic trendline that reversed the last short.
We have an engulfing candle on the 1 hour, followed by a long-body doji, so I think we're going to see a push down.
If we go below then that's my reversal sign for bigger lots.
The problem is history tells us BoJ will intervene, this type of knowledge can force people to get in big too soon.
Let's see what happens from here, SL above the last high.
JPY long sentimentIn the last 3 days, the increased interest of options market participants in the 0.00685 call has been noticed. The buying is systematic, but in small volumes and with a significant time lag. Such behavior is not typical for insiders, so we are most likely dealing with professional speculators. The purchase of this share is logically justified: the volatility of the central strike is extremely low, and from a graphical point of view, speculators are counting on a correction to the liquid area of emotional buyers. At the same time, we define the level of 0.006775 as an indicator, the break of which will confirm the correctness of this sentiment. Before the break of this level, it will be extremely risky to open long positions.
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USDJPY 4H :Support further rise USDJPY
New forecast
The dollar/yen pair rose strongly to cross and settle above the 151.00 barrier, reinforcing expectations that the upward trend will continue to dominate in the long term, paving the way for additional gains of up to 152.50.
Therefore the upward scenario will be remain valid and affective supported by moving average 50 that is continues to support the price to rise up but the current negativity may cause some temporary sideways fluctuation before resuming the proposed rise, so may the price try to do negative correction to 151.00 and then rise up,taking into account that the upward trend which will remain in place provided that the price maintains its stability above the 150.46 level.
The expect range trading for today it will between resistance line 151.76 and support line 151.00.
Additionally ,Today News will affect the market .
support line : 151.00 , 150.46
resistance line : 151.50 , 152.50
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BOJ under pressure to intervene yen weakness - Urgent Action Req
Recent developments surrounding the Bank of Japan (BoJ) are under increasing pressure to intervene in the ongoing weakness of the yen. As we stay vigilant in our trading strategies, it is crucial that we pause and carefully consider the potential implications of such intervention. Therefore, I strongly recommend that each one of us exercise caution and reevaluate our positions before proceeding further. It is with prudence and foresight that we can navigate through these uncertain times and protect our interests. Let's take a moment to assess the situation and make informed decisions before resuming trading. Stay alert and trade wisely.
Call to Action:
As a responsible trader, I encourage you to pause your yen trading until further notice. Take this opportunity to reassess your positions, consult market experts, and stay informed about the latest developments regarding BoJ's potential intervention. By ensuring we are well-informed and cautious, we can mitigate potential risks and make more successful trading decisions. Together, let's prioritize protection and long-term gains by taking a step back and reflecting on our strategies.
Raising Rates Here Will Blow Japan Up. Blowing Up US Yields
Up coming Federal Reserve meeting, there's still underlying inflation in the USA but the amount of interest on debt + Japan buying US debt while their currency is almost completely free falling.
Would be one of the worst fiscal policy disasters since 2009.
Looking at Japan's society they're completely clueless of how close they are to blowing up.
USD/JPY stuck below 150 ahead of Japan CPI reportSoaring government bond benefits continue to dominate the pair's price action. Investors still need to watch out for Japan which will likely rate closer to 150.
USD/JPY fell near 148.80, but quickly recovered to around 149.50 as the Bank of Japan (BoJ) is expected to announce its inflation forecast for fiscal years 2023 and 2024 earlier.
On Tuesday, Bloomberg forecast the BoJ's new core CPI for fiscal 2023 could reach 3%, up from 2.5% in July and more than 2% for fiscal 2024. Inflation Forecast higher shows that the BoJ is confident ahead of salary increase negotiations next spring.
JPYUSD #1 ( Long term road map !!! ) Hello dear traders .
Good days .
This is my our road map for JPYUSD which is plotted as per monthly Gann Square and Gann box. JPYUSD will try to test Gann Fan Trend line . With help of Gann Box road map is plotted .
Good luck and Safe trade .
Thanks for your support .
USDJPY; Zen and the art of economic cycle maintenanceThe Yen and thus, the Bank of Japan, is in a rather precarious position.
(Then again, when was the last time they weren't - in a precarious position?? ... .)
Admittedly, our Japanese is somewhat rusty lately but nowhere in the monetary manual did we find where it says: "Lending rates must be fixed at <0% or >10%, at all times!"
So, when the BoJ hangs it's hat on some arbitrary metric, such as the volatility in the USDJPY in this case, to guide it's policy and a potential departure from the negative interest rates (more so than based on the underlying economic data - CPI, PPI, unemployment, etc.) and then said volatility collapses, almost immediately?! ... One could only speculate on the complex range of emotions, induced in the BoJ's leadership (WTF?!, etc.). So,now what? ...
These previously unlikely turn of events suddenly provide a strong bias towards a (top-side) volatility spike, in the event of which a forced monetary intervention by the BoJ in the very near future becomes a virtually foregone conclusion!
On an additional note; Given the current US-Japanese rate differentials (as well as other factors) the USDJPY remains the least "over valued" among all the Yen crosses - making it a less than ideal such metric. Try on the CHFJPY or even the EURJPY as an exercise in absurd over valuation, for example. The likes of which have solid, almost identical, precedents in the late 1970 European central bank policies, most ending "in tears" and none more than Switzerland's SNB's, which slid into one of it's deepest depressions by the beginning of the 1980s!
This weeks technical picture (including Fridays close) further underlines this, by now much shifted, bias toward a top-side break out, potentially pushing prices well past the key 150.00 level, rather quickly. (E.g., certainly do Not be short the USDJPY, here! - To say the least.)
Current Rate Differentials between the Bank of Japan and ...
--------------------------------------------------------------------------------
- in Basis Points - ("most over valued" ranking)
- CHFJPY (Switerland) --- +250 - (#1)
- SKJPY (Sweden) --- +375
- AUDJPY (Australia) --- +400
- NOKJPY (Norway) --- +400
- EURJPY (EU) --- +450 - (#5)
- CADJPY (Canada) --- +475
- GBPJPY (G. Britain) --- +515
- NZDJPY (N Zealand) --- +525
- USDJPY (US) --- +525
- MXNJPY (Mexico) --- +11.25 - (#4)
- ZARJPY (S. Africa) --- +11.75 - (#2)
- HUFJPY (Hungary) --- +13.00 - (#3)
---------------------------------------------------------------------
p.s. This here is also the new Yen Thread!/b]
DXY INDEX, READY For a MAJOR BULL-FLAG-BREAKOUT!Hello There!
Welcome to my new analysis about the DXY, U.S.-Dollar Currency Index on the 4-hour timeframe perspective. Within the recent times the DXY has shown up with these main bounces in the range to retest previous resistances. With this occasion I detected further important signs to consider especially as bonds recently trended upward and non-DXY economies seem to move forward with higher interest rates than firstly expected. The unemployment rates for August could support a further strengthening in the DXY especially when the wave breakout is showing up in the underlying forex pairs also. The price-action seems to have reached such a momentum that the reversal is not likely now. The only concern here is for risk-on assets to make a turning into the more bearish direction.
Major Trend-Dynamic Developments:
When looking at my chart now you can watch there the DXY emerged with this massive ascending-trend-channel in which it bounced several times within the lower boundary and supports the recent uptrend with forming the next new highs that are necessary to hold the trend to the upside. Recently the index then moved forward to form the next important formation within this whole structure which is actually a major bull-flag-formation as it is marked in my chart. Such a formation has the potential to convert into a determining and extended bull-flag-breakout and currently the price-action is already attempting to continue with this final breakout meaning that from there on the DXY INDEX is going to emerge with high volume and form the appropriate wave-extension as it is marked in my chart.
Upcoming Perspectives and Underlying Indications:
With these bullishly inclined technical indications there are several other important indications which make sure that the DXY is continuing with the expected breakout and aiming for the target-zones that will be active after the breakout. All the non-DXY currencies in the basket seem to move further with the increased interest rate periods, this means that the DXY is strengthened as the opportunity costs of holding DXY increase with higher interest rates in non-DXY baskets. Furthermore, the bonds and treasury bills marked is showing increased high yields to the upside recently which is a main factor for a bullish cause supporting the recent trend dynamics and the expected breakout to settle. Taking this into the perspective, once the breakout has shown up it will activate target-zones marked in my chart and from there on the further determinations need to be measured, especially when the DXY shows up with a strong momentum into the target-zones this can also lead to a trend acceleration with a breakout above the channel. It will be an interesting dynamic to consider in the next times, therefore the DXY is in the dashboard watchlist and we are going to reevaluate and update when important changes emerged.
Thank you for watching my analysis. Support from your side is greatly appreciated.
VP
Yen Falls as Bank of Japan Holds Perfect Trade with US DollarThe Japanese yen has taken a tumble after the Bank of Japan's decision to hold interest rates steady. Meanwhile, the perfect trading scenario has emerged with the US dollar/DXY. It's time to capitalize on this golden opportunity and make some profitable moves! So, fasten your seatbelts and get ready to ride the wave of success.
The Bank of Japan's Impact:
The Bank of Japan's recent decision to maintain its interest rates has sent shockwaves through the currency market. As the yen weakens, it opens up a window of opportunity for traders like you to take advantage of this shift. The central bank's monetary policy has set the stage for potential gains in the US dollar/DXY, making it an ideal time to consider a short yen, long US dollar/DXY position.
The Perfect Trade Scenario:
As the Japan yen falls, the US dollar/DXY is poised for a remarkable climb. The US dollar has been gaining strength against major currencies, and this trend is expected to continue. By going long on the US dollar/DXY and shorting the yen, you can position yourself to reap substantial rewards. This perfect trade scenario is not one to be missed!
Why Now Is the Time:
Timing is everything in the world of trading, and this opportunity is no exception. The confluence of the Bank of Japan's decision and the US dollar's strength presents an ideal moment to enter the market. By acting swiftly and decisively, you can maximize your potential profits. Don't let this chance slip away – the time to act is now!
Call-to-Action: Short Yen, Long US Dollar/DXY:
Are you ready to embark on a profitable trading journey? Join us in seizing this golden opportunity by shorting the yen and going long on the US dollar/DXY. Here's your call-to-action:
1. Analyze the market: Conduct thorough research and analysis to understand the current market conditions and potential risks involved.
2. Develop a trading strategy: Create a well-defined plan that includes entry and exit points, risk management strategies, and profit targets.
3. Execute your trades: Open positions that reflect your trading strategy, shorting the yen and going long on the US dollar/DXY.
4. Monitor and adjust: Keep a close eye on market movements, and be prepared to adjust your trades if necessary. Stay informed and adapt your strategy accordingly.
5. Reap the rewards: As the yen weakens and the US dollar/DXY strengthens, watch your profits soar. Remember to stick to your plan and secure your gains when the time is right.
Conclusion:
Traders, the time to act is now! With the Japan yen falling and the perfect trade scenario unfolding with the US dollar/DXY, the potential for substantial profits awaits. Embrace this opportunity with enthusiasm and embark on a trading journey that could lead you to financial success. So, gear up, stay positive, and get ready to ride the waves of triumph!
Who's ready for a FRED 50 Trillion Balance Sheet? I Am.
Japan has no completely lost control of their bond yields.
Japan has completely lost control the US Yield Curve Control.
The FRED paused (as I expected they had no choice).
The FRED realizing they need to initiate YCC / QE / Rate Cuts before end of 2023 or we're going to see an economic meltdown.
Option 1, let yields raise > mortgages blow up > bank collateral blows up bail out 100 Trillion.
Option 2, start YCC / QE / Rate Cuts down > things don't blow up but spend 50 Trillion.
What's hilarious is there is ZERO news coverage on this ZERO, the USA setup a YCC facility with the BOJ to patch bond yields yet the JAPANESE currency CANNOT handle it and the BOJ is starting to actually panic / tap out.
People waiting for a "country" to enact the third world war, I'll give you a hint they always start when some major financial system breaks. That's this this is where we are at.
Japan has a GDP of only 4.941 Trillion, if they initiate more YCC / QE they will start to turn into the Turkish Lira and then mass people are going to panic about US bonds.
THERE IS ZERO chance we get to 2025 without a FRED balance sheet of over at least 30 Trillion, buckle up.
FRED Are Done Raising Rates -- Raise Rates? Japan Collapses.
Japanese Currency Strength is back to 1987 levels
Japan is the main source of YCC for the USA buying down bond Yields
If USA raises rates any more Japan will be in free fall collapse (hyperinflation)
They need to pause at worst start reducing rates.
My guess?
Money printer is coming back and will come back fast to save the Yen, this is not just a "Asian currency" this is the single weak point for the entire US bond system if the Yen goes the US bond yields go ^^^^^^^^^^^^^^^^^^^^^
Japan cannot tap out and raise rates, Japan cannot ditch the Yen and adopt the US Dollar, Japan is in some serious trouble here.
All Japan can do is continue to issue "Stimulus Packs" that is making the M3 go parabolic that leads to serious inflation. Now what happens when a country issues unlimited Stimulus Packs and cannot raise interest rates?
Gold Traders Reap Double Return with Yen vs. DollarHave you heard the exciting news? A golden opportunity has emerged in the world of trading, where gold enthusiasts can now reap double returns by exploring the potential of the Japanese yen against the US dollar. Brace yourselves, as we delve into this thrilling venture that promises to elevate your trading game to new heights!
Unleashing the Power of Yen:
While gold has always been a reliable investment, it's time to consider the untapped potential of trading gold in the yen. The Japanese yen has shown remarkable strength against the US dollar, creating a perfect storm for traders to maximize their profits. By capitalizing on this unique currency pair, you can unlock a world of opportunities and potentially double your returns.
Why Yen for Gold Trading?
1. Diversification: Trading gold in yen allows for diversification, reducing the risks associated with relying solely on the US dollar. This strategy enables traders to spread their investments across different currencies, mitigating potential losses.
2. Yen's Safe-Haven Status: The Japanese yen has long been recognized as a safe-haven currency, particularly during times of economic uncertainty. As gold is often sought after as a safe-haven asset, combining its trading with the yen amplifies the potential for significant returns.
3. Market Volatility: The yen's volatility against the dollar presents an excellent opportunity for traders to capitalize on price fluctuations. This dynamic environment creates a fertile ground for astute traders to make well-timed moves and maximize their gains.
Call-to-Action: Embrace the Yen-Gold Duo Today!
Are you ready to embark on a golden journey that promises double returns? Don't miss out on the chance to trade gold in yen and seize the potential for greater profits. Here's how you can get started:
1. Educate Yourself: Equip yourself with the knowledge and understanding of the yen's performance against the dollar and the factors influencing gold prices. Stay updated with market trends, news, and expert opinions to make informed trading decisions.
2. Choose a Reliable Trading Platform: Select a reputable trading platform that offers access to the yen-gold trading pair. Ensure the platform provides a user-friendly interface, reliable customer support, and robust security measures to safeguard your investments.
3. Develop a Solid Trading Strategy: Craft a well-defined trading strategy that aligns with your risk appetite and financial goals. Consider factors such as entry and exit points, stop-loss orders, and profit targets to optimize your trading experience.
4. Stay Disciplined: Successful trading requires discipline, patience, and the ability to adapt to changing market conditions. Stick to your strategy, avoid impulsive decisions, and continuously evaluate and adjust your approach as necessary.
Conclusion:
Dear traders, the world of gold trading has just become even more enticing with the yen's remarkable performance against the dollar. By embracing this unique opportunity, you can unlock the potential for double returns and take your trading journey to new heights. So, don't wait any longer! Equip yourself with knowledge, choose a reliable platform, develop a solid strategy, and embark on this golden voyage today. Remember, the yen is calling, and it's time to answer!
Disclaimer: Trading involves risks, and it is essential to conduct thorough research and seek professional advice before engaging in any trading activity.