Yen tech update – stocktraders need to follow closely

The Yen marked a daily 13 close to the 90 level but not at the 90 yet. Has the pattern of a triangle and looking on the weekly chart makes me believe we have to see the old alltime low around 80 sometime but thats far away. For now the 901 level may serve as a short term bottom but as a parallel indicator for the Yen to fall it needs to make a top or actually price wise a low against the Euro as well and therefore it needs to drop to or slightly below 110. The insane thing about the Yen is that it is overvalued by all means but the rising Yen is a matter of deleveraging than a statement of Japanese economic strength. The point is as I explained a few times the deleveraging comes at a high price as all who borrowed cheap Yen interest rates have to pay a high currency price now. Quite obviously they are not finished yet but we come close to an end of this leg. The Yen is a very good indicator for the stockmarkets bottom as well – guess I mentioned that a few times 🙂

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~ by behindthematrix on December 4, 2008.

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