USDJPY capitulates before BOJ blows up this summer
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The FED is either:
A. Going to be hawkish and provoke a mini-meltdown before another FED speaker comes out next week and hints at rate cuts in June for sure.
B. Going to be dovish
Either way, USDJPY will fall to 97 area, bringing a roar of inflation back into the limelight. People will think it's the death of the dollar, but what happens here is the opposite everywhere else since the dollar
DXY is the reserve currency.
This means when the dollar comes down, inflation goes up HERE - which means everyone else experiences DEFLATION. Deflation will force higher unemployement and a destruction of their foreign export base which is everyone. This will force them (especially the BOJ) to print their own currency forcing the dollar higher up past 140-160+.
This will explode the foreign currencies with ours being last. By this time there will be enough chaos that the central bankers will hope people will clamour for their enslaving CBDC's which allows them to have negative interest rates based on social credit scores.
A. Going to be hawkish and provoke a mini-meltdown before another FED speaker comes out next week and hints at rate cuts in June for sure.
B. Going to be dovish
Either way, USDJPY will fall to 97 area, bringing a roar of inflation back into the limelight. People will think it's the death of the dollar, but what happens here is the opposite everywhere else since the dollar
DXY is the reserve currency.This means when the dollar comes down, inflation goes up HERE - which means everyone else experiences DEFLATION. Deflation will force higher unemployement and a destruction of their foreign export base which is everyone. This will force them (especially the BOJ) to print their own currency forcing the dollar higher up past 140-160+.
This will explode the foreign currencies with ours being last. By this time there will be enough chaos that the central bankers will hope people will clamour for their enslaving CBDC's which allows them to have negative interest rates based on social credit scores.
Nota
BOJ is holding emergency meeting because Yen is getting too weak against the dollar - zerohedge.com/markets/japanic-boj-mfa-fsa-hold-emergency-meeting-yen-hits-34-year-low-against-dollarNota
Weston is perhaps the best go to guy for the BOJ: westonnakamura.substack.com/p/for-china-the-yen-just-got-too-cheapNota
Steve Henderson who's on here is probably one of the best guys for EW, Here's his analysis for USDJPYtwitter.com/TTCSteve/status/1772826164794642943
Nota
The Japanese Yen is at its lowest level against the dollar since 1990.Here comes the boom.
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BOJ will start selling US treasuries soon to defend the Yen. This will boost inflation, commodities mostly. I have my eye on silver having the most to project to - though it's a tough, beaten down sector because of all the banks who used naked shorts to move the price. Now that we have Basel 3 regs and China Shanghai Gold Exchange SGE setting the bid, that means larger banks are going to have a lot harder time to manipulate the price. Gold follows as well. I see miners being the leveraged play on the metals, and more specifically calls on miners. (NOT FINANCIAL ADVICE)Nota
twitter.com/TTCSteve/status/1775168747407651125Dollar is about to flush!
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A dynamic has changed now, the market and the FED are disconnected. Powell will probably come out and say that he has to check inflation metrics before cutting, and the market already is pricing in 3 rate cuts this year, even though the odds are plummeting and now the first rate cut is being pushed out to September. I predict that the market will see higher volatility pushing up gold and silver and other inflation barometers - to force the FED's hand. Unfortunately the FED will be forced to raise rates further when inflation's second rally gets going. I don't see volatility tamping down just because Powell won't cut rates fast enough - and until the FED raises rates, volatility will be hard to control. This will weigh on the dollar and the Yen will also be defended by the BOJ forcing the dollar lower...Nota
USDJPY is forming a bearish flag
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twitter.com/SamanthaLaDuc/status/1776232586945143276Samantha LaDuc is impressive when it comes to seeing patterns. She forecasts yields rising in Q4 - which means the dollar is rising - which means the FED is hiking because inflation has gotten out of control (hence precious metals doing their thing). This means this will cause inflation abroad and the JPY will fall in response.
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urbankaoboy.com/p/re-macrousdoil-the-battle-of-theIs great weekend reading that covers all the major players and their potential chess moves. It weighs possible moves and gives you a clear outlook of the market dynamics right now.
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twitter.com/NorthmanTrader/status/1777605937835983133I can see a snap up that runs some stops before the BOJ pulls out the Bazookas...
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Here's the snap up. Is BOJ gonna sell US Treasuries to boost its currency!? Will Ueda raise rates higher!? GET READY!!
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Or will a major US bank implode giving the FED the greenlight to cut rates?twitter.com/DeItaone/status/1778061060823462086
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twitter.com/VivaPost/status/1778086812172669309Tonight's Asian session will tell...
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Bull Flag broke open to the upside and created another bull flag which was just negated which is bearish:
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USDJPY is putting pressure on China's Yuan to devalue, which will lead to BOJ selling Treasuries.twitter.com/UrbanKaoboy/status/1779924432200532128
Nota
zerohedge.com/markets/plaza-accord-lite-japan-korea-get-green-light-yellen-fx-interventionWill Korea and Japan's Plaza Accord spur a Chinese devaluation? Yes if they actually do it. It won't work for long as the dollar will come roaring back as everyone defaults from hyperinflation. Ultimately I see 250 for the Yen, the Yuan will be 8-10 by the end of the year.
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