Japan Acts With Consistency

History Unchecked Repeats Itself

Late last night I posted on my LinkedIn account. It’s always a good idea to read what you can and listen to the World as it changes. That’s the way I learn and you should as well. Follow me, I don’t post for fun.

It’s a busy day down here in Texas so I’ll be brief. Naturally Ticker EDU takes up most of my time but with the temperatures rising, its “grass” cutting time. Nonetheless this is an article that ties a lot together so let’s get started.

Why I’m Looking For The Yen To Head Lower

First, as mentioned above, I read and listen a lot. There have been many articles about the Yen of late and on the surface, it looks like the “herd” thinks it is going higher. It’s always good to have other reactions especially when they are being countered.

Japan's three main monetary authorities held an emergency meeting on Wednesday to discuss the weak yen. They’re ready to intervene to stop the disorderly and speculative moves in the currency. In a sign of growing urgency to put a floor under the yen after it hit a 34-year low against the U.S. dollar, the Bank of Japan and the Finance Ministry and Japan's Financial Services Agency held a meeting late in Tokyo trading hours.

In a briefing afterwards, top currency diplomat Masato Kanda said he "won't rule out any steps to respond to disorderly FX moves". Kanda also said the BOJ would respond through monetary policy if currency moves affected the economy and price trends.

Bank of Japan Governor Kazuo Ueda said on Wednesday that the central bank would also keep a close eye on currency developments. "Currency moves are among factors that have a big impact on the economy and prices," Ueda told parliament, when asked about the yen's recent sharp declines. The yen is the worst-performing currency this quarter down more than 7% on the dollar. That’s music to a contrarian’s ears.

Technically speaking the charts look vulnerable with a “triple top” forming. Perhaps this relates to what I’m reading, perhaps not. Either way the trend towards lower rates in the United States comes into play in this election year so it’s a “hurry up and wait” strategy for what we manage.

Technical indicators are important to me once I’ve investigated the emotional side of the equation together with macroeconomic, geopolitical and geoeconomic influences as they are primarily important. Fundamentals rule our decisions and earning 5%+ as we wait for interest rates to decline works.

Well, it’s time to finish off the last of three courses that give you a better idea of just how we operate. Ticker EDU has been and will continue to be a “labor of love”. Being available to give back what 55+ years of experience reveals is priceless. As I have done for years, I listen to everybody. That’s how I learn and it should work for you as well.

Sometimes as this world changes, I have to agree with Freddie Mercury and reiterate that “I’m Going Slightly Mad”. Face it folks, you have to be a bit crazy to be involved in this industry. It’s always changing but if you have a plan, and more importantly you stick to it, everything works out. Remember, you are going to be wrong and lose from time to time, that’s just part of it. That’s part of life too. It’s all how you deal with it.