Yen

What is the Yen telling us?

As the economic and financial problems worsened in 2008, the Dollar supplanted the Yen as the carry trade currency of choice.

Yen vs S&P 500:

Yen ETF (FXY):


The Yen has just breached the previous swing high on a sign of strength. The dollar might be rallying, it continues to under peform the Yen since 2008. While spin suggests the death of the carry trade, it ignores the signs of life revealed by relative money flows. This means gold, the barbaric relic, will return to form once operation paper tiger loses steam.