Don’t Fight the Bank of Japan!

The Nikkei 225 has been flying, while the global markets are down to flat,  since the November 5th Bank of Japan announcement that it would be purchasing equity ETFs as part of its QE program (click here for our post).   That is, the Central Bank printing money to buy equities!

Many were skeptical the program was not enough to weaken the Yen.  The chart below shows their announcement coincided with the recent high for the Japanese currency.

The Nikkei has recaptured the 200-day and we wouldn’t be surprised to see the momentum boyz gun the market higher into year-end.  We’ll change our view if the index fails to hold its 200-day moving average  Stay tuned.


This entry was posted in Equities, Monetary Policy, Policy and tagged , , . Bookmark the permalink.

One Response to Don’t Fight the Bank of Japan!

  1. Pingback: 2011 Radar: Japan Sovereign Risk | Global Macro Monitor

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s