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Do not ever consider the yen pairs in concert with the usd pairs. Does not matter that the Eur trades against both, it can still be totally different.
The yen is BEGINNING to gain strength against the other pairs but it still has a long way to go to overcome its fundamental weakness. Any sign of weakness in the contra pairs as h]far as interest rates will result in rapid and possibly massive retracement as we have seen often lately. However, without any underlying strength in the Yen itself these retracements always seem doomed to failure.
The USD on the other hand has no underlying strength and in fact I believe shows signs of future weakness. Note the decline in interest rates this past week on Bernanke's talks to congress. That interest rate decline is what triggered the rally in the Yen as the spread narrowed on the carry trade. If that makes no sense to you, you need to do a lot of homework on fundamentals.
Regardless, anytime those triggers drop off the headlines, these pairs will return to form and resume their longer term trend.
In my opinion, of course...
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