Japanese Yen

While the world focuses on the flavor of the day, troubles in Greece, it continues to ignore the persistent strength in the Japanese Yen relative to the dollar. Once the carry trade currency of choice, the Yen is embarked on a bullish run against the dollar since 2007. How can the world's reserve currency be a safe haven when it continues to undeperform the world's carry trade currency? I can't. That's because the world's reserve currency is the new carry trade currency. This means that its status as a safe haven is largely an media driven illusion.

Japanese Yen ETF (FXY) vs S&P 500:


The Yen's battle with resistance reminds me of the old Aerosmith song, Chip Away the Stone (1978).

Japanese Yen ETF (FXY):