Most Overbought and Oversold Markets

Posted on January 13, 2013 by macromon

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)

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2 Responses to Most Overbought and Oversold Markets

  1. The Wolf says:
    January 14, 2013 at 7:03 AM

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

    Reply

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

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