Yen & Gold
October 28, 2011 - Gold in Yen : - a steady uptrend it remains - BUY
Yen - gold | ||
Bullish Objective | Y 1680 | |
Resistance | Y 1450 | |
Support | Y 1180 | |
Bearish Objective | Y 1080 | |
Technical pattern | bull trend |
Updated October 28, 2011 - Yen in Dollar - Whatever happens DO NOT HOLD DOLLARS!
Short term candle August 3 | Chart comment | |
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Long term candle July 8 | ||
october 28, 2011 - Yen in Euro - BUY
Short term candle | Chart comment |
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Long term candle | |
The Yen strengthened considerably as panic hit international markets after the Tsunami. This turned into a self-feeding trend as increasingly large numbers of investors came under pressure and were forced to close more positions and buy back their Yen shorts. This saw the Yen go from being one of the weakest currencies in the world to one of the strongest. The NBJ tried to stem the rise of the Yen like the SNB tried last August...these measures as a rule only have a short term impact. NO CENTRAL BANK can reverse a market trend.
Japan is still the largest holder of Dollars. The Japanese economy and financial system has been in a cleansing process now since 1990 or over a period of 18 years. The policy of low interest rates they followed simply did not work...and we now have the forced repatriation of funds for there reconstruction of the country after the Tsunami.
Cash investors should consider the Yen as an alternate to the Euro and the Dollar. We even consider it as a valid alternate against the Swiss. The Yen shows a clear trend reversal of a currency which has been under pressure for years as the Japanese experienced some cleansing of misallocated funds.