USDJPY Flash Crashes As All Support Taken Out - Record Collapse

[Ares]

Support broken as the dollar yen plunges to an all time record low. Everyone now watching the Nikkei to see if it opens. That the BOJ has not intervened yet is beyond ominous, and nothing short of a death sentence for the Yen carry traders.

<img src="http://www.zerohedge.com/sites/default/files/images/user5/imageroot/von%20havenstein/BOJ_1_0.jpg"/>

http://www.zerohedge.com/article/usdjpy-flash-crashes-all-support-taken-out-record-collapse

[Mouse]

Chickens coming home to roost. Bank closure Thursday?

[DMac]

Chickens coming home to roost. Bank closure Thursday?


Mizuho: ATMs stop working across Japan, cause unknown (http://www.reuters.com/article/2011/03/17/us-mizuho-atm-idUSTRE72G0G020110317)

[Libertarian_Guard]

I’ve got my own conspiracy theory about this. Let me float the idea that the Japs were actively intervening in the forex markets for two decades or more, with the express purpose of lowering their currency, while propping-up the USD, just to help their export markets!


Now, with epic troubles at home, and their repatriating of U.S. bonds back into yen, they’ve taken themselves out of the old sink the yen, raise the USD game. And besides that, the Japs know their export markets will take a hit here anyhow, so the effect of the strong yen is somewhat mitigated at this juncture.

[Neuro]

Their country is economically and physically broken, but their currency strengthens.... Yep, makes sense...

[SWRichmond]

Their country is economically and physically broken, but their currency strengthens.... Yep, makes sense...


Short term, it does. Intermediate and long term is the bitch.

[Neuro]

Their country is economically and physically broken, but their currency strengthens.... Yep, makes sense...


Short term, it does. Intermediate and long term is the bitch.
I understand that the reason is repatriation of USD investments, and that the Japanese needs a strong currency now, when their ability to export is sharply reduced, and import will sharply increase. And as you say the intermediate and long term situation is the bitch. Reduced production + increased consumption + increased monetary base + 115% of GDP government debt (which will grow quickly)= Hyperinflation of Yen. I wonder how much of the 1400 trillions or so of the notional value of the derivative mountain is focused in Japan at this point? I bet a large chunk... 100-200 Trillion $ maybe?