a-SO a-BE IT !! USDJPY and EURJPY

When you have an Abe as Prime Minister and Aso as his Deputy you sort of have an A team .

a-So, you end up with “A-h, I dunno what I am doing but I will make sure you will remember what I am doing.”

a-So they say this and they say that.

1. Target inflation at 2%
2. Target USDJPY 90-100.

a-Be they put their money where their mouths is and tell us how they will inflate their way back to their former glory.

Nikkei high 38,957.44 on 29 Dec 1989 when USDJPY was 159.90 (ratio 243). * Highest USDJPY I could discover was 358.44 on 31 Mar 1971, a date I cannot confirm if I existed.

Nikkei now 11,662 vs USDJPY at 92.10 (ratio 126).

In perspective, the Nikkei is up 20% since the A team came into the picture pre-elections in Dec but USDJPY is up 12% which takes off 12% off the investment.

26-Feb 3-Dec-12
CHG
NIKKEI 225    11,428.76   9,458.18 20.83%
EUR 1.3053   1.3034 0.15%
JPY 92.09   82.13 12.13%
AUD 1.02665   1.0420 -1.47%
GBP 1.5213   1.6058 -5.26%
CHF 0.92985    0.9253 0.49%
SGD 1.23885    1.2201 1.54%
CNY 6.2301    6.2287 0.02%
KRW 1087.9   1,084.05 0.36%
MYR 3.1026    3.0413 2.02%
TWD 29.681   29.0730 2.09%
THB 29.86   30.6500 -2.58%
INR 54.07   54.6650 -1.09%
IDR 9705    9,613 0.96%
EURJPY 120.21   107.04 12.30%
EURAUD 1.27149   1.2509 1.64%
XAU 1593.125   1,716.94 -7.21%
XAG 28.99   33.56 -13.60%

Japan cannot force exports when they have nothing to sell ! Even with the cheaper JPY and they just recorded a massive trade deficit for Jan, even with the lower JPY. Ok, granted tsunami rebuilding efforts and LV prices going up, Japan can’t sell enough flat screen TV’s to save themselves.

Japan Deficit

a-So, a-Be IT ! I am short EURJPY still (covering as I speak because the 5 big fig target accomplished). The trick this time has been patience and smaller trading size to handle the excessive volatility (check out the disgusting Vols).

I cannot gloat about it because I have been technically bullish since Nov.

Op Ed : Japanese Alarm Bells Sounding Faint

a-But-Then, we need to have them pull another rabbit out of the hat before we inevitably reach 115.00 as Retired Trader says.