Thursday July 13, 2006 - 10:39:58 GMT
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Black Swan Capital - www.blackswantrading.com
â€śThe yen has suffered the indignities of being shorted by hedge funds, being used as a funding currency by Japanese investors seeking healthier returns elsewhere and being ignored by the asset managers of the worldâ€™s central banks."
Steve Johnson, Financial Times
Is everyone expecting the yen to move on the BOJ? We have to think many who positioned for it were stopped-out of $-yen yesterday? Mr. Market creates some confusionâ€”one of his favorite pastimes. It ranks right up there with surprise.
Maybe the yen doesnâ€™t get quite the pop expected on tomorrowâ€™s newsâ€”25 basis points is the consensus from the BOJâ€”but net, net, it appears the Japanese economy is normalizing. If so, and IF the Chinese can keep the music playing, thereâ€™s a good chance we could see plenty of money flowing back to Japan. And that should support yen over time despite the near-term expectations.
USDJPY Weekly Chart:
Jack Crooks, Black Swan Capital Black Swan Subscription-based Service
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