Yen Breakout

I have been very skeptical of the Yen's recent strenght on the back of very poor domestic fundementals as well as my belief that it was not yen strenght but rather dollar weakness which in the end, as we have seen with the Euro's mvoe higher, such a state does not lead to long lasting selloffs. In any event, a Yen breakout looks like it could lead to some selling and a sldown in hte trend of the S&P 500. also the Nikkei will not respond well either. BOJ authorities last night mentioned that the mvoe in teh Yen was unwarrented adn hinted that intervention was coming. Yet again, intervention never works so why even mention? Because if the Yen were to put in a reversal at this point, the momentum is not nearly strong enough to withstand intervention. My feeling is that there are many traders with one foot out the door on this one. They just need a catalyst.

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