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Thursday, September 27, 2012

The Down Fall of Yen and Japan

Greeting !!!!

it is quite sometime.... blame this on my laziness ...

Alot of thing have being happen ...... EURO QE, JAPAN QE and EnglishQE and US infinite QE.

So we are living in reflation or de-leverge world?

 This issue i will focus on the down fall of Japanese Yen.. After Japanese economy will start to fall and i will bet it in deep trouble soon.

The strength of Yen is too strong for the Japan economy to grow.

 Japan is now facing both problem at home and exterior fact.
 - trade deficit looming due to higher import fuel bill
- production cost disadvantage
- High Yen value for too extend period of time
- Dangerously high budget deficit when compare to GDP
- The high saving rate which used to be golden egg of japan economy is dwindling
 - Aging population

All this point to downward trend of Yen. The fundamental of Yen is very distort from real economy which is not sustainable.

 I will cover more on the QE it is very intersting

 For now... short Yen as many as possible I think the the reward will be very high.

 Possible long term buy back target for Yen is 125 yen.

 Long gold in term on Yen ( wait for gold correction before taking this play) good luck with your trade