Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Dollar Appreciation Vs. Yen Could Be Win-Win for Both


Regardless of the reasons for this shift, this development has benefits.

The US dollar continues its near-term appreciation versus the yen, which could be a reflection of the uptick in US longer-term rates compared with Japan, as well as a perception that the Fed wants or will tolerate more inflation, and hence a steeper yield curve in an attempt to reduce unemployment.

Whatever the reason, the Japanese welcome -- and desperately need -- a lower yen, which means that right now this could be a win-win situation developing between the dollar and yen.

Technically, my near-, intermediate-, and longer-term work argue in favor of a generational bottom in development for the dollar versus the yen (a generational top in the yen), which is why I am bullish on the ProShares UltraShort Yen ETF (YCS).

The USD/YEN chart has followed my firm's bullish near-term technical script relatively closely in the last few days. Let's notice that the price structure has hurdled and sustained above its March-August down trendline (78.90), which confirms that a near-term low at 77.91 occurred on August 1.

Click to enlarge

In addition, sustained strength also will confirm that the combination of the June 1 low at 77.66 with the Aug 1 low at 77.91 represents a potentially significant Double Bottom.

At this juncture, key medium-term resistance resides at 80.10-80.55, which, if hurdled, will trigger very powerful buy signals that will point to a revisit of 2 1/2-year resistance at 84.50-85.50.

Mike Paulenoff is author of, a real-time diary of his trade alerts and technical analysis on sectors and their leading component stocks.

Twitter: @MPTrader
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Featured Videos