Risk Appetite Grows As Japanese Yen Sells Off

The risk appetite in the market place is growing significantly, with gold trading lower and World and US equities showing a strong bid (S&P 500 (^GSPC) +7% Monday) this is becoming more clear. With Yen the weakest major currency on the board there are other powers affecting it. The end of repatriation flows in late March and early April in the last 2 years has coincided with an 8 big figure gain on USD/JPY in 2007 and a 15 big figure gain in 2008, over the course of the first quarter of Japan’s fiscal year (beginning in April.)

With risk appetite growing and these figures in mind, it is quite clear where the bid against the Yen is coming from.

We will watch for the pair to trade higher with former support at the 21 day moving average coming back into play and a break north with 50% retracement, 200 day moving average and par as some resistance on the way to the 61.8% level in the short-term.

Subscribe by RSS Subscribe by Email