The Japanese government made explicit comments last night that assure me, at the very least, that economic trends are deteriorating as fast as I thought they would. Testing the 109 level, the Japanese Yen is hitting it’s lowest level relative to the US Dollar since January, as a direct result.
Japan's Finance Minister, Ibuki, actually used the word "stagflation", joining Ben Bernanke as the other major central banking head to do the same in recent weeks.
My short term target for the Nikkei is 12,807.
*Full Disclosure: I remain short Japan via the EWJ (ETF).
- Japan's Nikkei Is Breaking Down
(Chart courtesy of StockCharts.com)