USD <-> JPY back to 150.50 as Takaichi comes into power. Long term bond yield also hits 1.69%.

The yen only gets cheaper… (She plans on printing more money to tackle growth…).

I would expect high 150s to 160s in the near future. It's really not looking good for Yen power.

Cost inflation will likely get worse in the near term.

by throwmeawayCoffee79

15 comments
  1. Most of my money is in USD so I’m eating well. The cheaper the yen gets, the easier life gets for me. JPY to 300 and I’m eating fresh sushi for lunch every day.

  2. Just closed my position. Not sure how much of impact on USDJPY from US parliament from now on.

  3. Yen is getting devalued vs the dollar yet she plans on…printing more…?
    I feel like I’m missing something.

  4. To be honest , free floating currency is a relatively new thing. Prior to the 1970s, it was a fixed exchange rate. Obviously it changes over time but not like instantly as it is today. Hence why the USDJPY rate was 350ish before the change. Japan is a poor in natural resource country much like the European continent. The yen will keep sliding even further to 300+ by 2032. Its just math and time. The reversal into strength won’t happen until conditions in Japan’s economy, acquisition of resources and population changes.

  5. Suggest getting a financial instrument that doesnt get printed as a long term savings plan.

  6. Well, she did say she will work harder, not smarter, if that has anything to do with the situation.

  7. Good for me, my margin loan is yen but my assets are paying USD… Been doing this since forever even since it was around 110 yen for 1 USD. Debt got devalued…. 

  8. House loan in yen, investments in global equities, I don’t feel too worried.

    We all saw 160 a year ago, we can weather the swing. Just do not put your eggs in one basket.

  9. Not a chance. The dollar is rapidly losing buying power too. I expect the yen to recover quickly and strengthen to 140.

  10. [Japan 30Y LSEG is at an all time high](https://www.tradingview.com/symbols/TVC-JP30Y/)

    This means that borrowing has real costs now (for the Japanese govt. for Japanese banks, for us as consumers), where for the previous 30 years there was essentially no costs to borrow.

    Takaichi needs to understand that Japan is now in an inflationary cycle and she needs to combat inflation, not add to it.

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