Yen Gets The Green Light – 100 On Horizon

This has certainly not been a dull week in Capital Markets. The intraday investor has been exposed to just about everything. As of Friday, we have a commodity market that is telling the investor that global growth is slowing. A U.S equity market continuing to signal, financed by cheap money, that the US consumer is somewhat in the driving seat when it comes to stock prices. And finally, a European sovereign market that appears to be convinced that domestic Japan is about to embark on a global shopping spree. All cannot be true; a couple of these markets will eventually have to back down. The only cert that investors should hang to is that any realignment of these asset classes will not be smooth.

Day one of the G20 meeting in Washington DC has given Japan "the thumbs up" and USD/JPY the 'green light' to proceed to and beyond the psychological 100 barrier. Japanese Finance Minister Aso has indicated that no one opposed Japan's aggressive easing policies at the G20-meeting....