Just a quick morning update. Right now the USDJPY (Yen) is lower, but I want to you look at this link. As you can see, USDJPY is testing an uptrend line (and so far has held and caught a minor bounce).
According to the Wall Street Journal, Soros is aggressively shorting Yen and buying Nikkei stocks again after this pullback. Also Jeff Gundlach who has been very positive (and right) on Japan likes these levels.
We’ll see what happens today because global markets will be effected by what happens with non farm payrolls today, but I still believe that Japan is very oversold.
Also, Japan’s Government Pension Allocation Fund hinted that it will buy more domestic stocks overnight as the world’s largest pension fund plans to move out of domestic bonds and into domestic stocks. The fund has over $1 trillion in assets.
Just an update……………..see you on the chat.