Don't Forget the Yen

Ashraf - read your article on the Yen which crystalised my own thoughts over the last months. I very largely share your view and have made the same observation about the curious movement of the Yen in recent weeks. It's reassuring to have someone of your experience say it however. One point I'd like to add refers to your comment "JPY could outshine USD during the next episode falling appetite as markets exploit it as an opportunity to sell the greenback." That's my own feeling and my reasoning is that although the USD is growing as a funding currency, it is interesting to note that the Nikkei has not been nearly as bullish as the S & P in recent months which is likely to mean that Yen have been investing in the more bullish overseas markets - including those of the US. If the S & P falls then these positions will be somewhat reversed and this is what will make the Yen strengthen against the USD despite the fact that the USD is increasingly the funding currency of choice. Is my thinking correct?