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Forex Flash: Resolutely bearish of the yen - Societe Generale

FXstreet.com (Barcelona) - As talk continues over the potential success of bringing prices, wages and growth up in Japan after the bold action taken by the BOJ last week, and how negative that is for the Yen following plans to double the monetary base , according to Societe Generale FX chief Kit Juckes, "the link between monetary base and broad money is rubbish now."

He adds though: "We spent 15 years begging the BOJ to be more aggressive and I'll be bothered if I don't cheer now they are acting. The Japanese are buying foreign assets which nearly all (Swiss bond are the exception) yield more. They like duration and they like goodish credit ratings and that means OATs attract them like a magnet. I remain resolutely bearish of the yen."

AUD/JPY climbs above 102.00

AUD/JPY is surging back to pre-Lehamn crisis levels, last at 102.15, highest since early August 2008, on the back of continued Yen weakness since last BoJ meeting past Thursday. The cross has gapped higher from previous weekly close Friday around the 101.30 level, following the bounce from Friday's lows at 99.62, printed minutes after much worse than expected US NFP.
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