The Massive Move in Won/Yen Cross

Add currency wars to Asia’s geopolitical tensions next year as a result of the Abe landslide.

The Korean won/yen cross has strengthened a stunning 19.8 percent since June 4th.  That’s a big move in relative prices and competitiveness between the two countries.

Large Japanese exporters, who have been suffering and adjusting to the strong yen,  are now getting some relief and a massive boost from the currency move.  Witness the move in the Nikkei.

Also note the strong correlation of won/yen cross and the Nikkei.  Both peaked in March and bottomed on June 4th.

Blessed are the weak for they shall inherit the earth.

Dec16_Won YenDec16_Won Yen_NilkkeiDec16_Nikkei(click here if charts are not observable)

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