For the last few days the JPY has ignored the risk-aversion experienced by most of the other markets, weakening during a period when it typically would have strengthened. Something is up. The question to ponder: Is the JPY sending us an important signal on the broader markets ahead or has it merely shed a correlation that has been well-established for months?
My hope, as a holder of a 201K, is that the JPY is signalling that a major shift lies ahead for equity markets, which historically bottom months before any turn in the economy becomes evident. Trillions have been thrown at the problem in the US and more is in the pipeline. Maybe the JPY is trying to show us the way and happy days(or happier days) may soon be heare again.
