USD/JPY Pushes Market Lower

Just as we published late Friday and last night, the signals for early market weakness starting this new week have been in place.

As far as the USD/JPY, I showed it last night with the initial move lower on JPY strength and then it reversed and gave the USD/JPY upside room which it took as the knee jerk reaction was wrong.

The official news (and if you look at the charts from last night you know this is not true, it was just a knee-jerk reaction) is that Japanese GDP sent the Yen higher at first and then Chinese stimulus to major cities in need sent the USD/JPY higher overnight, it simply isn't true if you look at the currency charts from last night, but the financial media ALWAYS has to give people a reason for why the market did what it did to make it seem like a simple animal that can be easily understood and tamed.

I suppose it's no coincidence that China is giving stimulus aid (as they have been on a tightening course) just as last night's 20/20 covered the ghost cities (all brand new) in China are at the forefront of a huge property bubble and EVEN MORE, THE SLOWING OF THE CHINESE ECONOMY.

AS USUAL THE MAINSTREAM PRESS IS A BIT LATE.

I found this article on a quick search that we published Dec. 2011...

"From here in the US, looking East we think about the EU area trouble, but as I have been talking about for over a month now, commodity prices seemed to be warning of a slow down in China that was later confirmed by their non-manufacturing and manufacturing PMI, both in contraction."

It's all right there in market action if you're paying attention.