Thu Oct 18th 2007
Dollar Continues to Give Way Against Yen
By Mike Paulenoff, www.MPTrader.com
The dollar is very weak in general today versus both the euro and even the yen, which could be a change of profile, as in a more generalized, global exodus out of the greenback that will get the attention of the G-7 monetary authorities. Be that as it may, today's up-gap in the CurrencyShares Japanese Yen Trust (NYSE: FXY) reflects yen strength as the currency heads for a test of the 114 Aug-Oct support line. Right now the dollar is trading at 115.60/65, and my work argues for downside continuation against the yen, which will lift the FXY over the 86.70 level on the way to 88.00 immediately thereafter.
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