Some natter starting to come out. Not directly attributable to these moves but part of the overall picture nonetheless.
Repatriation is said to have reduced greatly over the last few months with Japanese corporates starting to trust the BOJ’s moves.
Corporates were hedging against any rises in the yen but that too has been reduced dramatically. If US based Japanese companies start seeing earnings rise then they naturally will benefit on both sides, the increased business and the currency.
They will also continue to look to put their money into US treasuries rather than JGB’s whose yields are so low.
The US and Japanese recoveries could start becoming a perpetual circle with each feeding off and to the other. If that does happen then we will really see some fireworks.
