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The yen (FXY) tumbles another 1% vs. the dollar as a new report suggests the BOJ plans to move...

The yen (FXY) tumbles another 1% vs. the dollar as a new report suggests the BOJ plans to move fast and move big with JGB purchases. Buying less than ¥93 moments before the BOJ announced aggressive new easing measures Thursday, the dollar this moment is worth ¥98.51. The Nikkei adds 2.8% in early Tokyo trade, giving it a middling 8.6% gain since Thursday.
Comments (16)
  • steppppo
    , contributor
    Comments (214) | Send Message
     
    Long live Mr. K and his deputies. Long Jan. 15 100 puts.
    7 Apr 2013, 08:33 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4043) | Send Message
     
    That is a great investment. This is probably my favorite investment for the decade:

     

    http://seekingalpha.co...
    7 Apr 2013, 08:43 PM Reply Like
  • Chris DeMuth Jr.
    , contributor
    Comments (4043) | Send Message
     
    This is a perfect environment for DXJ.
    7 Apr 2013, 08:57 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    Chris - with the Japan 10 yr bond yields fluctuating so wildly (wrt their low levels), don't you think that DXJ can be slung to the downside rather quickly?
    7 Apr 2013, 09:22 PM Reply Like
  • markrpat
    , contributor
    Comments (197) | Send Message
     
    Oops..Sorry Chris, I completely misunderstood the purpose of DXJ.......strike my last comment...my bad.
    7 Apr 2013, 09:42 PM Reply Like
  • Unsure Now
    , contributor
    Comments (406) | Send Message
     
    All this fast money sounds and feels great but at what penalty in the future??
    7 Apr 2013, 09:10 PM Reply Like
  • al roman
    , contributor
    Comments (4613) | Send Message
     
    You guys that are in congratulations,I am happy for you !
    7 Apr 2013, 09:20 PM Reply Like
  • ossing99
    , contributor
    Comments (4) | Send Message
     
    I live in Japan
    DXJ and JOF.......good choices.
    7 Apr 2013, 11:27 PM Reply Like
  • Ray Lopez
    , contributor
    Comments (1508) | Send Message
     
    http://bit.ly/13WlzVW

     

    Why Japan will crash and burn, reposted I believe from Chris DeMuth Jr.'s blog. 1 hour long but worth listening to.
    8 Apr 2013, 12:17 AM Reply Like
  • drbgallo
    , contributor
    Comments (2) | Send Message
     
    Japan will lose control of its interest rates and they will default. It is not if but when. Anyone who thinks the government can execute this radical unproven experiment and not have it blow up in their face obviously trusts government. Good luck.
    8 Apr 2013, 12:58 AM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    Great move by Mr. K. Could go down as the best central banker of his era. Bernanke should learn and watch how to deanchor deflationary expectations.

     

    By the way, all of you who criticize these moves, should realize that it's not really about printing money and it's all about expectations. If you don't understand that, you don't get monetary policy. BOJ has already printed tons of money. Why hasn't it had an effect? Because the market anticipates, properly, that the BOJ will start sucking money out at first hint of inflation. It has already done that several times over last 20 years. So, now the market has a hard time believing that any BOJ move is credible. But the more Mr. K. upsets people like you, the more the market believes that he is really committed to creating inflation.

     

    You should read some Friedman and come back here once you do if you don't get what I just wrote.
    8 Apr 2013, 01:58 AM Reply Like
  • ecoprof
    , contributor
    Comments (19) | Send Message
     
    Yep, it's all about creating inflation. If the dedication is real, it's not that hard to do. Reigning it in, on the other hand, might be a problem.
    8 Apr 2013, 02:39 AM Reply Like
  • Machiavelli999
    , contributor
    Comments (829) | Send Message
     
    Not really. As you said and just like Volcker showed, all it takes is dedication.
    8 Apr 2013, 02:55 AM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Hey, the new BOJ policy is already creating jobs. I heard that the BOJ is hiring thousands to carry all the freshly printed money from the BOJ to the homes of the top 0.1%. These are good jobs, you get to carry money, keep a tiny portion of it and mingle with the rich and famous. Who can say no to that!
    8 Apr 2013, 03:10 AM Reply Like
  • ossing99
    , contributor
    Comments (4) | Send Message
     
    Good point.
    And for those who think Japan is finished,
    Just remember
    As of January 2013, $5.6 trillion or approximately 47% of the debt held by the public was owned by foreign investors, the largest of which were the People's Republic of China and Japan at just over $1.1 trillion each.
    If Japan cashed in it's US bonds tomorrow.....could the USA pay?
    8 Apr 2013, 05:10 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (8173) | Send Message
     
    Japan stock market 2013 = U.S. stock market 1982.
    8 Apr 2013, 08:28 AM Reply Like
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