When one examines the JPY against all the crosses, AUD, GBP, EUR, etc, we are seeing the values at record highs across the board.
Does anybody know the economics of Japan well enough to say that the weakness of their currency merits all of these crosses at such extreme values. Are we seeing the results of carry trading? If so, how long can it last? Will it crash once Japan decides to add some interest to their currency? Or does Japan not really mind their currency so weak because it keeps up exports?
Eur/Jpy is up 1500 points in 1 year with almost a non-stop raise. Economics and price action tells us that what goes up usually comes down. How do you feel about this? Are we still going to see more record highs as long as eur and gbp go up against the usd? (that would be what I would figure). But is all this upwards momentum on the eur and gbp speculative buying or do we really have this much strength in europe and that much weakness in the U.S.?
Seems to me that sooner or later, unless the European big boys don't mind having every other country in the world not be able to afford European products, this run is going to have to cool off soon.
Penny for your thoughts everyone?
GirlFlyer
Does anybody know the economics of Japan well enough to say that the weakness of their currency merits all of these crosses at such extreme values. Are we seeing the results of carry trading? If so, how long can it last? Will it crash once Japan decides to add some interest to their currency? Or does Japan not really mind their currency so weak because it keeps up exports?
Eur/Jpy is up 1500 points in 1 year with almost a non-stop raise. Economics and price action tells us that what goes up usually comes down. How do you feel about this? Are we still going to see more record highs as long as eur and gbp go up against the usd? (that would be what I would figure). But is all this upwards momentum on the eur and gbp speculative buying or do we really have this much strength in europe and that much weakness in the U.S.?
Seems to me that sooner or later, unless the European big boys don't mind having every other country in the world not be able to afford European products, this run is going to have to cool off soon.
Penny for your thoughts everyone?
GirlFlyer