USDYEN update

The Yen daily chart shows clearly a final spike low to the 79.50 support is needed and ideally we make that level on weekly closing basis to complete the count but in any case we are about to get a 16 year double low pattern with one of the most overvalued currencies. The Chinese government is selling USA bonds and currency but has a horrible timing in entering the Japanese market who are the driving force behind the current JGB and Yen rise. As the Dollar weakness part of the Yen rise is about to end medium term since the FED can not carry on with their insane policy as they have completly failed to accomplish their official goal of stabilizing the US housing market as we just dropped to new lows ( the hidden agenda was rather to create free money and profit for Wallstreet). QE2 will not have an immediate follow up as the lack of efficency is obvious. That will start a medium term Dollar rally and the Yen will be the biggest benificiary as it is poised to drop  ( in chart terms rise) sharply towards 100. The converging MAs are a indicator of a big trend change ahead and it is rather a matter of 3-4 weeks


~ by behindthematrix on June 2, 2011.

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