Saturday, February 5, 2011

What About the Yen?

Marc Chandler submits:

Overshadowed by developments in the US and Europe, the Japanese yen has been largely sidelined and its movement more a function of the other side of the trade, like the euro, dollar and even the Australian dollar. The dollar appears poised to trade higher, with a move back toward the upper end of its Q4 range in the JPY84 area.

This will require a change of drivers. Japanese investors are not the prodigious overseas investors that they were from mid-May through mid-Nov last year. In that period, Japanese investors were putting an average of JPY886 bln (~$11 bln) a week overseas. Since then Japanese investors have been repatriating an average of about JPY63 bln a week.

As the fiscal year end approaches at the end of


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