Do you remember back to July, 2007 the Yen to the USD was 120. I glanced at an article in Money and Markets and decided to take a fresh look. Money and Markets author Bryan Rich writes Yen on Intervention Watch meaning that the pain for Japan is so great right now that we may be close to the government intervening as they did in 2003 and 2004. The Yen almost hit an even 85 to the dollar this week!
Rich points out that
- Honda’s CFO said making vehicles in Japan at a dollar/yen exchange rate of 85 is “not economically feasible.”
- Honda’s CEO said if the Japanese government can’t stabilize the yen, key export businesses would have no choice but to leave the country.
- Nissan’s COO said he’s “very concerned” about the yen’s strength.
Here’s the chart of USD:JPY and you can see not only did a strengthening Yen break the trendline that started at 120 before falling back, but it’s put in a triple bottom in this area and RSI is showing divergence. Might be time for a 10% countermove.
the market move tells me the world expects Q/E from fed very soon and is moving ahead of this.
I agree that everyone is anticipating this and possible bush tax extension..but usually when all are expecting…it is much easier to disappoint.
Market movement looks like completion of a very large long term head and shoulders pattern to me. Expecting a big leg down beginning this week.
Hey goingtoretire,
I sure hope so 
Yes I agree ,
Maybe the yen intervention would help strengthen the Dollar,
And bring the markets down Big starting this Week
Have a Blessed day
Mark
Good luck to you and retire. The light volume and huge intra day swings tell me the
computers and crash protection rigging team are in full control.
Don’t waste your cash on the short side, play gold or oil but shorting markets is fighting
the Crown as we say. BP will be a good long term play, they have paid off Washington
and will receive tax credits and offsets 2-3X the amount of any phony clean up attempts.
BP long opp of a lifetime here. Washington will soon pay them for lubricating fish stocks
whilst saving the gulf from rust.
Exactly Prince today is a no news day and will be run up green as usual for Mondays. The train to paradise is unstopable be LONG.
Much appreciated AAFLCB / Mark, and I agree with your thoughts, it seems very likely. Hoping very much that it goes that way, and pretty confident that it will. Monday’s are usually up days, so it would seem Monday would surprise most folks if it closed in the red, especially deep in the red. Looking or a close below 1100 first and if it blows by that, 1070 would be nice.
You have a blessed day as well, take care and see you here tomorrow my friend.
In comment number 2, I meant to say completion of the right shoulder of the head and shoulder pattern.
Europe is green futures are up all aboard next stop 1150.