Thursday, November 12, 2009

Yen Again


Chart speaks for itself.
 
Crudewire Oct 12,   "The Japanese Yen is also at a significant juncture. After correcting up vs. USD in an ABC structure lasting TEN  years, the Yen topped out Jan09 and came off in a clean 5 waves to April 09. Since then it's gained against the USD in a series of abc's that has taken it nearly back to last Dec.'s highs.  Call that waves 1 down  and 2 back up (or a and b).
If the Yen is beginning a 3 wave down after finishing a TEN yr. move up , the downside  potential gets really intresting; for instance the move down in the mid 90's was from 125 to 68 , so IF this leg is a 3 or C down AND it equals A you're talking about it losing half it's value vs USD. 

Hard to imagine right now.  But then the unimaginable seems to be happening more frequently."

More recently awareness around the blogosphere re Japans fundamental sovereign debt problem has started to increase.     See Mish's Budget Deficits Soar Out of Control in Eurozone, Germany, US, UK, Japan; Yen's Last Hurrah.

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