1. Why Japanese Yen Strong
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2. Introduction
● Japanese is the official currency of Japan.
● In the 19th century silver Spanish dollar coins
were common South east Asia, the China
coast, and Japan.
● The spelling and pronunciation “yen” is
standard in English.

3. Japanese circulating
● ￥１ 1oo% aluminium
● ￥５ 60-70% copper 30-40% zinc
● ￥１０ 95% copper 3-4% zinc 1-2% tin
● ￥５０ Cupronickel 75% copper 25%nickel
● ￥１００ Cupronickel 75% copper 25%nickel
● ￥５００ 72% copper 20% zinc 8% nickel
● ￥1000,￥2000,￥5000,￥10000 paper coins

4. How to trade Japanese Yen
● Japanese Yen is currently trading at 15 year low
levels.
● A strong yen hurts Japan which is a export
driven economy.
● US dollar is also attributed to Japanese govt not
doing enough to stop to the rise.

5. Trade Cash Flow
● Japan has a trade surplus and is exporting
more importing
● The strengthening currency could lower exports
and increase imports in the long run.
● This weakens the U.S. Currency.

6. Investment Cash Flow
● There seems to be a strong demand from non-
Japanese assets, especially short-term money
market instruments.
● The demand for assets outside Japan has
definitely not been very strong recetly

7. Demand for Japanese Assets
● Party this could come from foreign reserves
diversification. Think about China for example
who wants to be less depended on the U.S.
Dollar or Euro.
● Dollars will be printed than that there will be
new Yen printed, will strengthen the Yen.

8. Trade Example
● If I decide to buy Oct YUK calls, it was trading
for $1.06, when YUK closed at $83.7
● Maximum risk is only $106 and no matter how
low USDJPY pair go.
● However, if USDJPY rises to even ~86.5 in the
next 30 days.

9. Summary
● Repeating what we said above: the cause for
the strengthening of the Yen is that the Yen is a
that the Yen is a currency with net follows: more
Yen are bought then that there are Yen sold.
● In an historic perspective, the strengthening of
the Yen is nothing new and not unexpected.

10. Reference
● http://www.stocktrendinvesting.com/blog/why-japanese-yen-so-strong
● http://en.wikipedia.org/wiki/Japanese_yen
● http://www.optionpundit.net/trade-ideas/how-to-trade-japanese-yen-via-options