Japanese 'funds' are throwing money at risk again '

Terrible investors. Still they chase risk and yield with an obsessed love affair with the AUD.

Someone should tell them that the devastating Queensland/Australian floods will probably end up being a huge fiscal/economic headache for Australia.

Also that JGB bond yields are rising in tandem with UST's and one day Japan will need to auction a TON of debt to finance their barely functioning economy

Japan and Asia will start to buy USD (updated 1)

...and they will buy a ton of US dollars, just when they bought the EUR back in May 2010 and sold USD

refer to chart, 1st Nov 2009 the USD collapsed against the Yen @84.81 a record. Now pending that record with a new USD collapse (v's YEN) currently @85.47

*Any Japan/Asia central bank buying should cap and sell any USD/crosses, namely hedged commodity currencies.


Please refer to Amazing Central Bank Intervention (update 1) re: FX losses in Asia from central bank intervention, similar to the Swiss National Bank 14billion loss protecting the EUR.

*The flip-side is that the Bank of Japan and Bank of Korea may resist in huge purchases of USD to protect rising YEN/WON on the premise that they may already be nursing losses on the EUR, also refering to SNB lossess that occured (14billion loss).

If this is the case, the short sellers on the USD should move in very quickly (depending on Q.E 2 re: Fed Reserve).

Also buying of the YEN, as a 15yr low is approached (USD).


Godzilla style.