The yen fell for a second day against the euro on prospects the European Union will help Greece stem its budget crisis, damping demand for Japan’s currency as a refuge.
Yen as a refuge? Wow, that's rich. Don't allow MOPE to confuse temporary money flows with safe-haven status. Safe-haven currency implies a consistent refuge from the ravages monetary inflation and lack of fiduciary duty. If that were truly the case, the Yen, all fiat money, would consistently outperform gold since the onset of the depression (global crisis) in 2000. For those new to the site, please review the fiat gold trends since 2000 for confirmation.
The Yen money flows are more a reflection of the interplay between leverage and speculation. The Yen first showed up on the radar screen in early January.
The money flow dynamic between the Commercials and Specs has been extremely consistent in the Yen since 2007.
Ebb and flow within the context of U.S. dollar as the carry trade currency of choice.
Yen and the Nonreportable Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest:
Source: bloomberg.com
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