Negative interest rates, the favored policy of the interventionists within European and clearly now Japan, charge depositors to park their money in banks. Japan's unexpected and hardly decisive (5-4 vote) move, represents would could be the last desperate attempt of Japanese central planners to reinvigorate its economy through an unorthodox expansion of version of QE and Abenomics; the fact that all other versions of QE have failed to stimulate growth for nearly a quarter century suggests the depth of their desperation. Don't expect the Japanese media to point that out at least initially.
A string of bearish setups within increasing Q3 distribution from August 2015 to January 2015, a long-term bearish message for the Yen, suggest that the invisible hand understands the situation unfolding in Japan. Agreement of price, leverage, and time is needed to focus the down impulse or decline (see Review of Yen).
Headline: Stocks surge on Japan's negative rates surprise
It's the last trading day of January and it's off to a positive start thanks to a surprise move by Japan's central bank.
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