Forty percent of Japanese manufacturers would relocate factories if...

[ASusilovic]

Forty percent of Japanese manufacturers would relocate factories and development sites abroad if the yen continues to trade at 85 to the dollar, a survey conducted from Aug. 11 to Aug. 24 by the Ministry of Economy, Trade and Industry found.

The number of companies saying profits will decline because of the yen’s strength rose to 65 percent from 16 percent in a May survey, when the currency was trading at 90 yen to the dollar. More than 50 percent said they would see a drop in earnings from the yen’s strength against the euro.

“I want Tokyo to hear our wailing,” Suzuki Motor Corp.’s Chairman Osamu Suzuki told reporters on Aug. 26. “Something needs to be done to prevent Japan from sinking. Frankly speaking, that’s how I feel. All we can do is to keep asking for help. I spend every day feeling anxious about this.”

http://noir.bloomberg.com/apps/news?pid=20601087&sid=abn_M_gd01MM&pos=5

When is the BOJ finally ready to ACT ????? Since when does BOJ need coordinated central bank action to show its resoluteness ?

 

[tradingjournals]

You did not follow the Yen last night? It was a ferocious down move for the Yen. I knew that the Japanese would act on the night of Thursday to Friday. Last business day of the week. Now we will see what they will do on Sunday. If they are smart, they gap it.

 

[ASusilovic]

Quote from tradingjournals:

You did not follow the Yen last night? It was a ferocious down move for the Yen. I knew that the Japanese would act on the night of Thursday to Friday. Last business day of the week. Now we will see what they will do on Sunday. If they are smart, they gap it.

I wouldn´t call yesterday´s move any kind of intervention. Rather some asset reallocation from bonds into equities or in other words some market participants taking again some risk on.

Anyway, a clear statement of BOJ would "DO IT".

 

[tradingjournals]

It was the Yen that made the move first before the stock market and the bonds.