Rhody Trader
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It's a repatriation play on the yen.
iota
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So purchases needing to be made in Yen?
Rhody Trader
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Yup. Local reconstruction, etc.
wackypete2
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Ahhh, the joys of fundamental trading. lol. Don't try to figure this stuff out it'll make your head explode. Just go in the direction of the trend!
Peter
Martinghoul
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The difference between yen and kiwi is also in the carry dimension. RBNZ could (and did) respond to earthquake aggressively by cutting rates. It's very difficult to imagine the BoJ able to do anything meaningful about rates here.
L
Liquid validity
I'd guess multi nationals and insurers etc will be also adding to the pressure by hedging, not as much of a problem with kiwi, due to comparitive lack of large scale import / export trade.
Pete hit the nail on the head though, just follow the trend don't try to work it out.
Pete hit the nail on the head though, just follow the trend don't try to work it out.
TradeTraka
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Haha, yeah my heads exploded a few times already trying to figure out the fundamentals.
wackypete2
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Are we still repatriating? The sell off in Japanese stocks is a big negative for the JPY. usdjpy is up about 160 pips from the low. This is why trying to make sense of this stuff gives you migraines.
Peter
Peter
wackypete2
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