Yen weakening

15 Jan

I posted some time ago that Abe’s position was mostly about hope. I thought that he was going to pay mostly lip service and it would be business as usual, but it appears I was wrong. I wonder how long the hope will last ?

Well as of right now the Yen has “weakened” to 89 to the dollar. With the Yen moving back towards making exports profitable again it appears the government can buy themselves more time before ultimately falling to the quadrillion yen debt they have built up over the decades. I have read that Zaibatsu want to reach a 106-08 range to pad their profits enough to go back to business as usual. If Abe continues to have his way perhaps we will see the magical 100 yen rate hit perhaps by March ? Its going to be interesting to see how things pan out now that Obama is back in the saddle after a long campaign season. My bet is on dollar rally until washington gets its act together and further devalues…

The market in Tokyo is up too. The Nikkei hit its highest level since April 2010. I think the question everyone is asking is “Are we seeing a new normal or is this just noise in an otherwise very dim market going forward ?” My guess is the later but I suppose the title of this blog would indicate that I am bearish on things.

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