FishyJoe said:
You haven't been following the Japanese market for the last two decades, have you |
You either have insanely bad timing or insanely good timing I can't tell. The Japanese government just announced a rather large stimulus package while the BofJ just announced that it is going to start directly purchasing corporate paper and hinted that "vigorous quantitative easing" was on the table after friday's carnage thanks to the failure of the US to bailout it's auto industry. Given that the bruising the nikkei has been taking a month back was being referred to as "Sony-shock" I think they might be a candidate for support.
The yen suddenly has been getting hit thanks to large numbers of over leveraged institutions, who have been engaging in the carry trade and now suddenly and simultaneously have to meet their margin calls. This of course happened at the same the BofJ was trying to unwind their dangerously large holdings of sovereign debt amplifying the problem.
However if you and NJ5 really think the Yen has more to go then I would suggest you guys open a forex account and place a wager. The economist intelligence unit is still basically predicting the BofJ will intervene to smooth out the yen's strengthening over the next few years predicting an average rate of ¥99 to $1 and ¥134.6 to €1 for 2009. But hey, you guys are the experts, no doubt you will be the next Soros :P
