Last Friday, the CFTC released their weekly report of futures positioning. According to the data, which was as of last Tuesday, short positions in the Japanese Yen hit the highest levels since August 2008. At that time, the Yen weakened significantly and soon after a short squeeze pushed the currency sharply higher against the [...]

Posted in Intervention, Japanese Yen, forex blog 5 Comments »

The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.
The following chart illustrates the significance of the breakdown. USD/JPY is trading in sell zone, [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Forex Technicals, Japanese Yen, forex blog 2 Comments »

I am back from vacation and found this interesting tidbit that could lead to further Yen strength over the next few days:
Sumitomo have announced they are looking at doing a rights issue next week (up to USD 8.6 bio equiv) of which 50% will be offered to non domestics. This deal is expected to close [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Japanese Yen 8 Comments »

My good friend Rhonda Staskow has posted updated charts on the positioning of Japanese retail traders transacting through TFX, one of the largest FX brokers in Japan. According to their latest data, Japanese traders are turning net long USD/JPY, EUR/JPY and GBP/JPY after being net short in March. There are no [...]

Posted in 2009 japanese yen, Japanese Yen, forex blog, japanese retail positioning 2 Comments »

USD/JPY is on a tear this morning. US equities is also trading higher which is completely mind boggling given the fact that US economic data was very weak and Fed Chairman Ben Bernanke warned that we may not be looking at a recovery in the US economy until 2011 or 2012.
There could still be [...]

Posted in Bernanke, FOMC, FOMC Minutes, Federal Reserve, Forex Technicals, Japanese Yen, consumer confidence, forex blog, usd/jpy 7 Comments »