Is this the end to the Nikkei rally and Yen weakness?

When the market opened in Tokyo stocks were widening their losses through the morning session Monday, with the Nikkei tumbling nearly 580 points to move around 14,000. The yen weighed on exporters while players remained jittery over recent volatility in the market.

Is this clients / investors selling ??? Technically yes , but reality is they are selling due to margin call .

This is how the market stands .

Market

Nikkei 225
14,157.34 – 455.11 -3.11%


Currency

 

USD

EUR

GBP

CAD

AUD

JPY

101.0000

130.5800

152.7500

97.7820

97.2550

 


 

Yesterday Bank of Japan Governor Haruhiko backed bullish views on asset marker and said Japan could cope with the increase interest rates .The minutes memo from the BOJ meeting on April 26 showed that a few members see difficulties in hitting the 2% inflation. When Kuroda came to power he unveiled a plan to double money in the economy over two years by ramping up bond purchases, chasing a target of 2 % inflation .

I don’t believe anything has changed in Japan the fundamentals have started to change , consumer spending is up and exports have increased also . I still see Nikkei going towards 17000 year end.

Greed and Fear that what moves the market . At the moment fear is rampant ,

 

Tony Evans

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