Eye on the Yen
by Mike Paulenoff, Fri March 18th, 2011
Indeed, as we told subscribers to expect, the G-7 (US, Japan, Germany, France, the UK, Italy and Canada) decided to intervene with the Bank of Japan on Thursday to "stabilize" the Yen.
Now the real battle begins, but as I have mentioned lately, the plight of the Yen since 2008 (its relentless climb, that is) in defiance of otherwise dismal Japan fundamentals, which were negatively exacerbated by the recent earthquake and tsunami damage, desperately calls for a lower currency to enable the Japanese economy, the Japanese Government, and its dynamic people to recover.
Have a look at the daily USD/Yen chart from January 2010 to the present, which shows a consolidation wedge pattern interrupted by the March 16 plunge to a new historic low at 76.42, before yesterday's intervention returned prices back within that wedge at near 81 1/2.
ETF traders may want to watch the ProShares UltraShort Yen (YCS).
Mike Paulenoff is author of www.MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking. Sign up for a Free 15-day Trial!
