USD/JPY hits 140 for the first time since 1998 then quickly reverses

There was a good battle at 140.00 but the bulls finally broke through and the pair is up to 140.12 at the high. You have to go back nearly 24 years to get to these levels and in 1998, the pair didn't stay there for long.

So far though, this hasn't lasted long either as a quick round of profit taking has dropped the pair back to 139.81. No doubt the break of 140.00 triggered some profit taking from long-term bulls who have ridden an absolutely magical trade this year.

US rates are much lower than back in 1998 but the Bank of Japan has yield curve control now and that's crushing the long-held role of the yen as the safe haven Safe Haven Safe haven is a term for financial assets that investors turn to in order to better protect themselves, or sometimes even profit from during market turmoil. Safe haven assets most commonly are considered government securities in the United States, the US dollar, precious metals such as gold or silver, low-yielding stocks, or cash, among others. These assets are the most likely destination in times of political or economic crises, or unstable market conditions. Investors who prefer these types o Safe haven is a term for financial assets that investors turn to in order to better protect themselves, or sometimes even profit from during market turmoil. Safe haven assets most commonly are considered government securities in the United States, the US dollar, precious metals such as gold or silver, low-yielding stocks, or cash, among others. These assets are the most likely destination in times of political or economic crises, or unstable market conditions. Investors who prefer these types o Read this Term of choice. Instead, that money is flowing into US dollars, where you can now earn 3.51% in a two-year Treasury.

I just can't believe that inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term in Japan is as low as reported. The combination of high global prices of commodities and the extreme fall in the yen this year are a perfect inflationary storm and CPI is still sub-3%?

The momentum is still higher here for a test of the 1998 high but there's a big risk of the BOJ pulling the rug.