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Yen Draws Safe Haven Share
Yen strength is here to stay especially as the US dollar's safe-haven lustre is eroded by the worsening US data.
While I respect your views on EUR/USD, but somehow you have got it wrong on the pair. There is literally zero probablity of EUR/USD cracking 1.1. Right now even with the weigth of 80-120k shorts at varying points of time, EURO is taken a low of 1.16. What does that tell you? There is bear raid on the currency and yet their buyers out there. And huge buyers!!!
EURO currency will appreciate not just against the USD but against every other currency incl CAD,GBP for the simple reason that while EU is reigned by a cacophony of idiots, but as and when needed they are pulling their might to reign in the deficit levels. The willingness to bring in austerity while painful is being executed. SUch levels of decision making is not seen even in the US.
So probably what you see is a decoupling of world equties and commodities from the dollar and coupling to the new currency EURO. It is only a matter of time before you see Oil and others trading in EURO rather than dollar. You have already seen that linkage (unofficially) in Gold. As EUR/USD rises, you see Gold falling!! Exact opposite was happening last year. You will see similar relationship building in every other asset classes vis vis EURO.
YEN and EURO movements are historic moves and they will define the next leg of depression/crash. Preludes to massive disorder.
But EUR/USD parity is near impossible. But is 1.1 possible? Maybe yes but tough.
But if eur gains momentum near the 1.33 levels, then we staring at short trip to some unseen levels.
It will act rather swiftly to push the pair to at least around 89.00.
70? Yen per Dollar? Why not 30? or 10? Insane crowd keep talking..
USDJPY will be back to 90 before you know it.. And DOW will be propelled up again..
Money has noway to go but into Stock Market.. They saying deflation and I think
inflation, Gold higher, Dollar lower and YEN will keep strong for as long as Japanese
will allow it.. You think Japan happy to see USD keep devaluating and YEN rising, while
they keep holding second (or even first) largest position in US Treasuries?
Wait and see, not going to take long.. Ashraf maybe OK for daytraders, He is the one
who was crying loud about EURUSD parity just little while ago...
CNBC talking heads.. What they know? Nothing... We all can talk
after the fact.. YEN will NOT go below 84. Period. Watch and see..