Japanese Yen May Fall Post Abe Resignation, AUD/USD Eyeing RBA
As a Japanese investor, I have always been fascinated by the ups and downs in the Japanese Yen and as I have watched the market reaction in the last few days to the announcement of Prime Minister Shinzo Abe’s resignation, I have realized that it is going to be a very interesting ride ahead. I am not sure that this market will jump higher than the Yield Spread Premium, which is currently trading at an all time low, but as the market goes up, so will the prices.
Japan has been one of the leading countries in the world for creating business deals. As we all know, Japan has been the main driving force in Asia in terms of the growth of their economy. However, it seems that the country’s economy is facing a series of issues and it is no surprise that the markets have been affected. The Prime Minister and his Finance Minister are the two most important people in Japan, so the timing of his resignation was very important.
There is no doubt that Japan’s economy is in a crisis but it is no need to panic and fret about this because the economy will not collapse tomorrow. All we have to do is to wait until the markets start to stabilize and then we can expect the Japanese Yen to go up a little bit and it might even go up to the level that it did when the bubble burst.
The other big thing is that the Japanese markets will have to take a long hard look at its economic policies. After all, the last thing that they want is to see a market that is too risky and unpredictable which is exactly what they are now facing.
When the markets start to stabilize, it will take time for all the players to get their heads around the fact that it is the end of an era where the leadership of the country has been unceremoniously removed and replaced. So, we have a chance to see if there will be any significant changes in the economy of Japan.
So, how does the Japanese economy face a change when Prime Minister Shinzo Abe is no longer in office? It is not a pretty picture but I am sure that after some time and much debate, the markets will realize that Japan needs to re-invent itself and its economy.
I can assure you that the Japanese markets will face an intense period of analysis and re-thinking about how they want to proceed with its economy and it would be quite interesting to watch. because this is one time when Japan is ready to face the future.
If the Japanese markets do decide to follow the global economic trends and are able to withstand the tough times, then there will be no doubt that the Japanese Yen will certainly go up significantly. So, investors need to make some serious investments in the Asian markets and this is a very good opportunity for you.
You see, after all, the current Prime Minister of Japan has already said that he would resign when the economy faces problems, so you cannot forget about him. He is no longer in charge of his government, so he will be able to help out in making the decision for the markets. But, you need to remember that things are not always going to be this easy and that there is some risk involved.
However, I will tell you that in the end it will take some time for the markets to come back into their senses and realize that it is time to have a meeting with the new prime minister of Japan and this is one opportunity for you to take advantage of. You see, this is one of those times when the market is asking for someone who knows how to deal with it and this is probably the right person for you.
This will give you a big chance to understand how things work and you may even be able to learn something from this experience. After all, a lot of people got themselves into a lot of trouble by trying to make their own decisions and you may learn some things from them.
One of the best things to do is to invest in a Japanese mutual fund that will allow you to gain exposure to the Japanese market and give you some valuable lessons in dealing with it. You may even be able to learn from their mistakes.