Yen Falls Against Euro as Stock Gains Damp Demand for Refuge

The yen fell against the euro as rising stocks damped demand for the refuge of the Japanese currency.

Newswire reports often imply zigging when one should have been zagging. The contraction of volume during the break of the gap implies a false breakdown that should be reversed in time.

Yen ETF (FXY):


The uptick in net longs from commercial traders as price declines points to another bullish setup in the Yen. The bullish setup could come as early as this week.

Yen and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:


Source: bloomberg.com