Don't Forget the Yen

Said-what is your take of this GOLDman-backed trouncing of the USD, goosing of gold, and equity rally without an upward blip in usd.jpy?

@chloe-relax. gbp/usd will head back south. Ashraf says it is capped at 1.5750.

Great Point Pollux -

like The Great Jobless Recovery Hoax, we are today experiencing an equity rally and bashing of the usd WITHOUT a correspondingusd/jpy rally.

GOLDman Sachs at its best!

Yen strength is fundamentally not viable, for a longer rally in usd we need a much stronger yen if thats the case than we may be nearing the bottoms in major currencies for this year 1.32 in euro and 1.53 in gbp. additionally yen crosses have upheld major sp levels from last year. however we might see figure 87 in usd yen in the process. I think major sp levels in the crosses will hold and usd rally will soon come to an end. We can already see some buying intersest in major currencies from big names. dont forget that euro was in 1.6 and gbp near 2 before the last year rally and than there is no big global crises right now which can make people run towards major risk aversion.i think euro and gbp will have a long way to go up after bottoming at the above mentioned prices by Ashraf.
However its just my personal study and i can always go wrong besides i am quite new to forex.

Dear Ashraf kindly correct me. if wrong.

I'm not an expert on the Yen by any means (or much else TBH :-) ), but going by what Ashraf says about USD and JPY sort of taking it in turns to be the haven for risk-aversion, and given his projection for EUR/USD, it seems to me that a lot of this must go also for EUR/JPY. Indeed we have seen some good moves down in the last few trading days. I'm not sure where the target would be, but unless there is some intervention on the part of the Japanese authorities, I would have thought there was room for downside here (allowing for bounces of course).