Japanese Yen: No Safe Haven After All?

As Zero Hedge has noted before, we think the market was overvaluing the yen on the back of numerous theories (e.g. safe haven, shallow analysis of Japanese demand numbers, various dollar related items, BoJ open actions). As we looked at the numbers, we couldn't help but think that some were being a little optimistic in light of the macro factors at play. At month end, the market reacted sharply to almost consistently bad news coming out from Japan; unemployment, production, retail and the Tankan indices all came out below expectations.