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Noda warns against yen's rise

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The yen will continue to strengthen as long as the profligate spending of Europe and the US continues. America will have a QE3 for sure as that is the nature of politics ie to kick the can down the road. Massive reconstruction is needed for the Tohoku area as well as investment in new energy tech and energy plants in Japan that the Japanese people are asking for-these facts will keep the yen strong and in demand.

Gold has behaved so unseasonally that future Q4 seasonal demand will only force the price up.

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I have a dumb question: Many of you are saying that the gov't shouldn't pre-announce its interventions, as it gives the currency speculators information and means the gov't is giving money away when it intervenes.

But here's my dumb question: isn't it the other way around? The more they drop hints that they'll sell yen, the less incentive the speculators have to buy yen, since the value will be expected to drop soon. Thus, simply threatening to sell should help the gov't bring down the value of the yen, right?

So, then why shouldn't they give up as much information as possible about their interventions?

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Talking up the prospect of intervention is a strategy to get some limited relief without having to spend trillions. But the recent intervention, and any repeat of it, is a futile waste of reserves that are better spent on rebuilding Tohoku. The dollar will continue to slump, and so the Yen will appear to rise, though its dropped vs EUR and CHF recently.

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Spot on mojibake. That was what the Swiss did with the Euro (EUR/CHF). They wanted people/ investors to do what they were doing. The unfortunate thing for them is that it worked to a point but there was a point at which the EUR fell against the CHF and has just continued to fall from that point on. The reallity is that even a cenbtral bank cannot over come the power of the market.

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So does this mean a "decisive" committee will be formed, and they will study "decisive" action before putting this out for a referendum in the diet. And they will "decisively choose to consider all sides, and hold a vote, which will "decisively" bring the matter full circle. Then debate will begin.

There will be no intervention. I am counting on their lack of decision making being the decision itself.

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I will take decisive actions if necessary without excluding any possible measures, while watching even more closely if there are any speculative movements,” he said.

Pay attention to a massivie YEN buying by China.

SOLUTION #1

Japan needs to call for G7 emergency meeting for a world coordination and effort to restore an "UPTICK" rule prohibing SHORT SALES worldwide until the market itself finds an equibilium.

SOLUTION #2

The worldwide leaders need to step up pressuring China to adopt a global economic practices to play a fair play. A)Currency to go to floating system from current basket system. 2)Remove ALL unfair market restrictions that have been placed and practiced against foreign investors, if they are not willing to do it, then Japan will do the same against China.

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Oww, it went off and posted before adding another critical issue here before closing my post. Next PM has to know too much and too fast Japan QE will lead to hyperinflation then to depression in Japan. So he needs to do a good balancing act.The bottom line for Japan is a "long term" JOB, JOB, JOB creation.

Pray for Japan

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Agree with kurisupisu,

US FED has not ruled out QE3, they MAY do that. If they decide to do that, Yen may well be 56 yen per $$ according to the technical chart.

Meantime, Japan needs to start restoring Tohoku and investing in new energy tech.

All these internal spendings have to be linked to a long term domestic employment (a full time and long time job creation), not building airports and cultural centers. That kind of spending only benefits construction contractors, bureaucrats, politicians and unemployed short term workers.

Pray for Japan

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Why would anyone exchange a U.S. dollar for a mere 76 yen?

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Why would anyone exchange a U.S. dollar for a mere 76 yen?

Perhaps because they know that if they wait another two months they'll only get 72 yen.

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