US Dollar / Japanese Yen Low Risk Opportunity

By: Black_Swan

We’re wondering: How credible is the Japanese yen risk-aversion play? Stocks have been less than stellar lately yet the yen has pretty much been sliding against the buck. That’s not exactly how it worked when subprime, credit crunch and writedowns were the new buzz words on Wall Street.

But today the yen is giving us a little taste of old – stocks are weaker and the yen is firming up. But then again, today’s yen strength could be mostly technical. The dollar/yen pair is butting its head on overhead resistance. After the run it’s had since the middle of March, a bit of a corrective move (at the very least) seems in order.

And while the yen’s yield differential is not improving amidst an environment focused on inflation, a break above the key USDJPY level could hit the yen hard and quick.

Jack Crooks

Black Swan Capital LLC

http://www.blackswantrading.com/

Black Swan Capital's Currency Snapshot is strictly an informational publication and does not provide individual, customized investment advice. The money you allocate to futures or forex should be strictly the money you can afford to risk. Detailed disclaimer can be found at http://www.blackswantrading.com/disclaimer.html

Currency Currents is available for only $49 per year. Just visit the sign-up page on our website to subscribe: http://www.blackswantrading.com/Currency_Currents.html

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.