Yes.
The Yen is getting seriously overbought, against the dollar. Is this transferring the risk of the carry trade unwind, when it comes again, into this pair, but in the reverse direction.
The Nikkei and Yen continue to strengthen on worse than expected economic data coming ouy of Japan. The Japanese government has gone as far as claiming a ‘jobless recovery’ which is as logical as owning a blind seeing eye dog.
The markets will have to face the double whammy of a flight to security into the USD, as well as the reverse unwinding of the USD/JPY pair when this bear market in stocks gets back into gear.
Will the SEA currencies, including the RM, get sold off massively in tandem with the JPY? Maybe.
There is a lot more that can be said, but I just want to be on the record as the first to comment on this undue bullishness in the Yen. And to confess that I will laugh at anyone that gets whacked in the face when it gets sold off later…
Jeevindra Kumar
