When yen is low, it militates for exporters to abroad. For example, products in 100 yen are exported into Japan. In the case of 100 yen to the dollar exchange rate, it values $1 in foreign countries. And in the case of 120 yen to the dollar exchange rate, it values$1.2 in foreign countries. Even though it values the same in Japan, its value in foreign countries increases and profits are bigger when cheap yen.

Additionally, utilizing the cheap yen and decreasing prices of products in Japan, the strategy to increase the sales can be thought. In that case, the prices in foreign countries have to be decreased as well. But, it would be fine as it can make the profits as well as before cheap yen.

Considering this, who receives benefits by cheap yen? It is exporting companies. They can improve their performance and increase their stocks. Basically, the Japan is big exporter. So, when cheap yen, Japan stocks becomes underlying upward trend.

Receiving benefits is not only stocks. Cheap yen increase exports and the money from abroad is flown into Japan in large numbers. The money flew from abroad is used in Japan and makes economy underlying upward trend.

However, cheap yen does not only give profits. Japan is a nation poor in resources. So, most of materials depend on imports. To become cheap yen too much is to increase material prices importing from abroad. So costs coming from the factory are high and Japan gets harder as a result.

Additionally, another demerit of cheap yen is to increase competitive edge between companies. This could make excess of export and the problem of trade conflict appears and disappears. Excess of cheap yen is not only good.

When yen is high, it militates for importers from foreign countries. For example, you import a product of $1. In the case of 100 yen to the dollar exchange rate, it values 100 yen in Japan, and in the case of 90 yen to the dollar exchange rate, it values 90 yen in Japan. The same price in foreign countries can be bought cheaper in Japan.

So who receives benefits by strong yen? It is import companies. The company's stocks importing oil, mineral ore, and foods increase when strong yen. This is a theory.

Meanwhile, strong yen militates against export companies. Even though they make money in abroad, it weighs on their performance as their profits reduce with yen conversion. The stocks related cars and high-tech decreases when strong yen. This is a theory too.

Well, what will Japan stocks be in strong yen? In conclusion, it moves to minus in whole. Basically, what an exchange is bought means the strength of the country's international economic force. As the Japan is said to be big export, exporting is a basement of economy.

The companies making profits by exporting take a leading part. They are about not only a big company but also a small and medium-sized company. Especially, in the case of a small and mid-company, they are barely alive if they are pressured by strong yen, as they do not have enough funds.

Even if an import company receives benefits, it is harder that an export company gets minus. Basically, just think "the stocks can not be on underlying upward trend in strong yen".

Trading both stocks and exchange, you can see there is a big different of movement in price between them. There is a terrific image about the movement in price of the stock. For example, when earning news of a company beats the expectation of the market, the stock shows a rapid rise and posts an all-time high easily.

By contraries, if earning news of a company falls short of expectation of market, its stocks take a great dive and post an all-time low easily. The stocks posting the top keeps and become underlying upward trade or repeat up and down after increasing up to a certain level and then keeps decreasing down.

This is called "3 day top". The stocks posting low price remain on the same level for a while at safe zone. This is called "100 day bottom" the movement of exchange in price is softer than the stock's. It does not increase 2~3 times like the stocks.

In the place that the movement range is not big, underlying trend of both up and down does not long. The movement in price is quite rough. So, "100 day bottom" in the stock does not hold true with an exchange rate.

It is not too much to say that an exchange is a trade of economic force between countries. The reason why its movement in price is smaller than the stock's is that the national economy prospect does not show a big surprise in a short term.