Dollar/Yen Clears Resistance, Next Stop 85.5

Dollar/yen cleared the top of the resistance zone, which we identified in our last post.   Note the rocket ship to a 10-month high after retesting the generational low in February.

We’re in the process of constructing a Weekly Japan Sustainability Watch and looking and searching for some real-time indicators similar to our Weekly Eurozone Watch  Contact us if you have any suggestions.

Stay tuned.

(click here if chart is not observable)

This entry was posted in Black Swan Watch, Dollar, Japan and tagged , . Bookmark the permalink.

3 Responses to Dollar/Yen Clears Resistance, Next Stop 85.5

  1. Tiho says:

    You should start buying the Yen now, as the Eurozone Crisis will soon continue again. The market is not attacking the Yen because Japanese budget is the centre of attention. The market is selling off Yen because they stupidly believe good jobs reports will ensure Fed does not do QE3. Therefore Dollar rallies and Yen weakens.

    Having said that, USD / Yen rate is still cheap, compared to how low it will go. We will break 75 eventually and might go much lower towards 60 during the next and final phase of EU Crisis. This is a buying opportunity, not a time to be predicting major Yen weakness. Start buying as of next week!

    • Anonymous says:

      Japan, a mercantilist nation, has a trade deficit, is starting to have to go to international markets to borrow for it’s budget deficits, and has a shrinking population increasingly made up of old/retired people. Oh yea, I’m buying that company …

  2. Reblogged this on Lighthouse Securities and commented:
    Earlier this year I wrote a piece saying that Dollar Yen was breaking up through a multi-year downtrend and I thought this would be my trade for the year. After a false start where I was stopped out and then stopped back in again the the yen is doing as expected.
    I have been meeaning to update my thoughts on this for a while but havent got around to it but Friends over at MacroMonitor (one of the best blogs on the planet) have done so today.

    This one is not going to be straight line but I continue to think Dollar Yen is going higher. The target identified here is the next key level.

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