It is Not Just the Yen Improving….

• Posted by Greg Harmon
• on June 6th, 2013

All eyes are focused on the Japanese market. The Smart Money is supposedly unwinding their position in Japanese Stocks and buying back their short Yen. The chart for the Yen proxy, the $FXY ETF, does show this. The rounded bottom moving higher, with a rising Relative Strength Index (RSI) and a rising Moving Average Convergence Divergence indicator (MACD) for support for further upside only have the top Bollinger band and the 50 day Simple Moving Average in the way of

a breakout higher. It has been here before, so express yourself cautiously. But other major currencies are also moving higher. The Euro ($FXE) has been rising since May 17th. It also has support for continued upward price movement from a rising RSI and MACD. And look at the British Pound ($FXB). Rising since May 22nd, it is now breaking over its 100 day SMA and has support to keep going from that same rising RSI and MACD. So the Yen, Euro and British Pound all happen

to be rising against the dollar and all started at about the same time. Interesting. These 3 currencies happen to make up over 83% of the US Dollar Index. And the US Dollar Index is falling, hmmm. So what if this wasn’t driven by the Smart Money unwind on Abenomics? What if it was all orchestrated by the US Treasury? Has Jack Lew made friends that quickly? If instead of watching the Yen or the Euro or the Pound, you look to the US Dollar Index then there are some clues as to where this may end. The Bearish Shark on the right of the chart is at the second downside target at 84.60 and the next target lower would be to 81.37.

Join the Dragonfly Capital Views Premium Membership

Want to learn more about Dragonfly Capital Views?Dragonfly Capital Views Performance Through May 2013 Expiry and sign up here.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus