Most Overbought and Oversold Markets

Asia x/Japan equities began to to work off overbought conditions.

Japan’s Nikkei continues to reprice higher on weaker yen. Italy’s MIB and Spain’s IBEX experiencing the “positive contagion”  from Eurozone sovereign spread compression and now approaching an 80 RSI.

Profit taking  in the dollar/yen was met by buyers.  We could be wrong but this move feels different and $/yen may remain overbought for a while.   Note we have changed to the market convention of quoting $/yen rather yen/$.

Click on chart to enlarge.

WIR_Overbought

(click here if chart is not observable)

About these ads
This entry was posted in Monetary Policy, Technical Analysis and tagged , , , . Bookmark the permalink.

2 Responses to Most Overbought and Oversold Markets

  1. The Wolf says:

    A reblogué ceci sur le blog a lupus…un regard hagard sur l'écocomics et ses finances…. and commented:
    Add your thoughts here… (optional)

  2. Pingback: Monday links: swapping one risk for another - Abnormal Returns | Abnormal Returns

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s