Japanese yen bears getting more mainstream

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The Wall Street Journal has a story today about some fund managers who are betting against the yen. It’s not awfully insightful but it’s a decent primer on the case for USD/JPY longs.

Strategists say the economics are leaning toward a weaker yen. with U.S. developments encouraging and those in Japan mediocre at best. Minutes released this week from the Bank of Japan’s late-October policy meeting indicated that three of its nine members were concerned about negative risks to the economy. Board member Sayuri Shirai on Wednesday said the central bank is open to taking further easing steps if economic growth stumbles and deflationary pressures return.

The worry is that the trade is crowded and that’s a legitimate concern but it’s also a reason to be ready to buy on a dip.

Author: Adam Button

Adam Button is the managing editor of ForexLive™. He was previously the chief currency strategist at XForex and has also worked with Intermarket Strategy. Adam believes there's an edge in knowing every tidbit of news. He was formerly the head of the markets team at the Canadian Economic Press and is a graduate of Ryerson University. Adam lives in Montreal, follow him on Twitter: @FX_Button.


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Adam Button


  1. Adam, I always remember the previous owner of this site saying when technical and fundamentals are aligned go in hard. I would have to say this is currently the case for USD/JPY, the perfect storm.

  2. Meanwhile from the real world:


    Japan currently retains unique national requirements which add to the cost of imports, without bringing benefits to the consumer. ACEA stresses the need for Japan to accelerate the harmonisation of its vehicle standards with UN Regulations.

    “Our industry requests that an EU type-approved vehicle can be sold in Japan without the need for further certification or costly modification. This is not the case today,” explained Mr Hodac. “European cars are amongst the safest and cleanest in the world, so there is no reason why a car that is suitable for EU consumers should not be suitable for Japanese consumers.”


  3. Harry the previous and current owner of this site is FXDD. However , if you mean moderator as in Jamie, or Adam, you are correct.


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