Does The Japanese Yen Signal The Start Of A Currency Crisis?

Carefully look at the following two charts of the Japanese Yen:





On the 2 hour chart it is clear that the descent has been steady and resolute.

On the weekly chart the severity of the currency collapse is more apparent.

The Yen is beginning to fall out of bed.

Now, a major support level exists at the 104 to 105 level, so it will be interesting to see if the currency stops falling or continues to blast through support.

Keep your eyes on the Yen over the next few weeks as it will probably give us the first tangible evidence that the bond market is fed up with ultra low rates.

As our wise readers will remember, the Japanese were the first to enter into a deflationary state with accompanying low interest rates way back in 1989 - 1990 after the Nikkei began its collapse.

The other indicator to watch concurrently is the price of gold.

If my premise is correct, in the next few weeks gold will finally will finish its consolidation and begin its ascent, as fiat currencies begin their long descent.

Comments

  1. It may turn soon, this hurts the other trade partners

    ReplyDelete

Post a Comment