Forex

The surging yen has been great for those of you that have followed my insights over the last 4 to 5 months. However, there are those who suffer on the back of a higher yen.

Take a look at Toyota’s stock below. The Yen is the line chart that is rising and the Toyota chart is the candle stick chart that is falling.

Toyota’s stock is very representative of what’s happening in the Nikkei 225 index as a whole since it is chocked full of Japanese exporters. As the yen rises, their exports look more expensive which curbs spending and thus hurts their sales. But even more importantly, the profits they do make are eroded as the yen moves ever higher.

So they really get hit on a couple of fronts as the yen soars. There’s a huge chance that the USD/JPY exchange rate could move from parity (100) where it’s been recently down to 90 in the months ahead. If so this will bring more havoc upon Japan’s Nikkei.

Also, a rising yen is crushing the U.S. dollar when it comes to the USD/JPY exchange rate. This means that the dollar is worth less and less all the time as Americans buy Japanese goods from Toyota, Nissan, Canon, Sony, etc.

And remember that China is raising its yuan against the buck at a faster rate than ever. So the buck isn’t going to be seeing any “cheap goods” out of China or Japan anytime soon.

As China moves into manufacturing more expensive goods, the costs to Americans will rise. Formerly America has been able to lower their cost of living due to the cheap goods that they could get from China that work their way through Wal-mart, etc. However, in the upcoming years, those days will be history.

This means that the “cost of living” will be going up for Americans and that means their dollar will buy less and less all the time. In fact, we’re seeing it right now with the most basic of necessities…food and gasoline.

All of these things will only make for an uphill battle for the next several years for America.

Aren’t you glad that we pointed all of this out to you well ahead of time so that you’re benefiting from a strong yen and strong Swiss franc? You’re buffering the impact that it would have upon you by acting upon the insights you’ve received here.

You’ll continue to stay ahead of the pack and more prepared than the masses just because of your diligence in “seeking out” knowledge here.