From The Reformed Broker:
Ignore Japan's new central banker at your own risk, because he's on a mission to blow up the Yen.
This is a developing story and I am hardly an expert on Japanese stocks, but I have to believe that Japanese bankers have taken notice of the weak dollar-led recovery in US asset prices and may want to make moves of their own.
By now, most market players are keenly aware of the dollar's current (mostly inverse) relationship to stock prices. They should also consider that the Yen makes up about 13.5% of the US Dollar Index (USDX), nowhere near the weighting of the Euro cross (58%) but more significant than any of the other currencies.
Below is the Nikkei 225 index over the last 40 years...
Read full article (with chart)...
More on Japan:
China is on the brink of disaster
This could be the best contrarian bet of 2010
This stock index sells for just FIVE times cash flow