Higher Inflation in Japan Might Be a Good Thing

| About: iShares MSCI (EWJ)

Inflation in Japan is heading a bit higher. But, it wasn't enough to get the inflation bugs moving into yen (or out of dollars, as may be the case). Instead, traders sold off the currency even though the rate of growth in inflation is pointing higher, as this chart shows:

But, the growth hasn't been enough to drive inflation up to levels that would scare the BoJ into a concerned effort to control inflation. To be honest, with as much deflation as the country has, you almost wonder if the BoJ should let inflation run rampant for a while just so as to let the country catch up from so many years of negative growth.

That would surely irritate a few other central bankers in the world, but so what.

I've been short yen for a few weeks now, and that's been going swimmingly. Looking to step into the market and sell some short-dated .8400 puts (119.00 USD Call equivalent). There's about 9 trading days left to go. I'm hoping that the yen will push lower one more time to pop the price up a bit more.