THE YEN IS NOW TRADING AT 109 YEN TO THE US DOLLAR

The Yen has continued to gain strength despite BOJ's Kuroda's NIRP and expansive QE programme. The original intention of the BOJ is to make the Yen weaker but it has backfired somehow. Instead of becoming weaker the Yen has gained in strength.

A strong Yen will impact Japan's exports, thus hurting Japanese companies in the process. The BOJ has hoped that a weak Yen would help boost corporate profits and encourage wage growth, and therefore consumption and then inflation. All these are not happening now.

Because of this, the Nikkei has fallen below the crucial 16,000 mark, prompting consumers to be wary of spending their money which in turn will depress the economy further. The public in general have been withdrawing their money and keeping them safe at home.

Will BOJ deepen the rate cut or will there be more QE? The BOJ's balance sheet is already at a dangerous level as shown in the chart below (Source: St Louis Fed, Zero Hedge):

Another worrying trend is that a stronger Yen will weaken the US$. A weaker US$ will lead to a stronger Euro. So will the ECB embark on more QE to weaken the Euro?

It is a vicious circle which sees no end. It is a race to the bottom.

That is why I continue to favour gold, silver, gold, gold and silver ETFs and silver miners and miners ETF,

Remember to always do your own due diligence.