Japanese Yen

Repositioning within the trend, i.e. the setup, almost always reveals itself in the leveraged markets. The pattern of inflows into weakness and outflows into strength has not changed since 2007. This is important, because a change will occur as the trend changes, Yen peaks, in the coming months/years. The peak in the Yen will likely precede outflows in Japanese government bonds (JGB) and US Long Bonds. This trend warrants close attention.

Japanese Yen (FXY) and Yen Diffusion Index (DI):


Headline: Yen sell-off pauses after fresh quake hits Japan

The yen was off an 11-month low against the euro and a 2-1/2 year trough versus the Australian dollar on Monday, as another earthquake in Japan led some investors to pare bearish bets against the Japanese currency.

Traders said speculators' positioning and some technical indicators suggested that rallies in the euro and the Australian dollar against the yen could pause in the short run with the latest earthquake being used by some to book profits.

Source: reuters.com