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JPY/USD: Plunging Sun

Published 04/19/2022, 11:13 AM
Updated 07/09/2023, 06:31 AM

Remember how Japan was going to take over the world in 1990? Yeah, not so much. Here’s what their currency, the yen, has been doing against the US dollar for the past eight years. 

JPY/USD Long-Term Chart

One long-term view of the Japanese economy is by way of their consumer price inflation for the past sixty years. Through the 1970s and 1980s, when their economy was genuinely transforming into a global miracle, the inflation represented an economy that was booming. For the past thirty years—literally flat-lined.

Japan CPI Long-Term Chart

In fact, there’s really just about only one solid asset in the land of the rising sun:

Japanese Gold Standard Futures

Latest comments

Japan is an export machine, why would they want a stronger yen? South Korea  is an export machine, why would they want a stronger won? Let us see The rising South Korea and Japan. Especially South Korea.
To buy materials….? They dont have resources!!!
You may want to show the JPY basket. JPY is going against tightening central banks. Japan is an export machine, why would they want a stronger yen?
To buy raw materials …. Silly !
Check this - it is not just JPY. EUR in the same quagmire. Fed reversing its lose monetary policy after 1980 (42 years) will have at least this much impact on USD
It's not just JPY. All currencies are depreciating against USD.  We are about to get 40 year breakout.  If USD manages to gain 130 breakout - 160 is next.  Otherwise, very soon, it will be USD that will go into abyss!
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