USDJPY touched 110 again.

1. Weakness of JPY will be continued despite huge volatility of global markets.

(this year)

USDJPY touched 110 again unlike Global Investment Banks expected.

Actually, ostensible situation in the markets has been very supportive to JPY.

Trade-war led to huge volatility in overall stock market.

US Stock market fluctuated and US T-Notes were attracting the participants.

Global stock-market went down.

2. Actually, volatility from trade-war could be minus factor for JPY

Trade-war is obvious minus factor for global capital market.

With this, overall currencies are showing weakness against USD except EUR.

In the past, JPY had status of super-safe asset by exerting strength even if the other currencies were showing weakness against USD.

But in this time, situation is different.

The event hadn't been effected as plus factor for JPY because the participants thought that Trade-war could give destructive damage to Japanese exports.

3. Let see Japanese stock market

Actually, it's not true.

Japanese companies, specially automobile-sector, have prepared to those kinds of events since 1990s.

Negative effect is too obvious to ignore, but the degree will be limited to level which the players could deal with.

Earning momentum for Japanese companies isn't dead yet.

Huge liquidities still left in global markets, even though Fed, ECB and BoJ are changing their attitudes.

And preserved liquidities in global market will be flowed into more fundamentally stable markets like Japan, German or Korea, not into unstable markets like China, South-east asia or Italy.

I think that Japanese stock market is providing very good opportunity to buy for domestic players in now.

Reverse-correlation between Japanese stock markets and USDJPY will lead to additional increase of the number.

4. My next target of USDJPY is 115.

High volatility will keep going in global markets, but I think the volatility will release a little at least during coming weak.

Considering feature of JPY as safe asset, this will be minus factor for USDJPY.

My next target of USDJPY is 115, and Band for this coming week is 109 - 112.