Happened to glance at the Yen strength by glancing at CurrencyShares Japanese Yen Trust (FXY) which is designed to track the price of the Japanese Yen net of Trust expenses.
See Chart
Not only has the Yen been very bullish since its bottom, but FXY has risen from 81 to current top of 115, Some think we could be looking at a challenge of the old Yen highs. The Financial Times has the story:
Traders said the yen’s break upwards through its December high could open the way for the currency to test the 14-year peak of Y84.80 it hit against the dollar last November.
Once the yen had scaled that peak, they said, the way was open for the currency to test the record high of Y79.70 it hit against the dollar in 1995.
What does that mean to U.S. investors and traders? The US economic recovery could be faltering which would cause a flight to US Treasuries, record lows yields and another round of “quantitative easingâ€, bigger deficits, more selling of dollars, and a higher Gold price.
CurrencyShares Japanese Yen Trust (FXY) QE2 USD Gold
The post Rise Of Japanese Yen appeared first on Mover Mike.