Here is an update on the Yen, which has been moving into its Yearly Cycle Low. I have been shorting the Yen with YCS since late September now and it has been a sweet trade for those who may have followed me. 😉
Previous Yen and YCS Posts:
BTW, the Yen is an important currency with respect to Gold and that is one reason I watch it closely. It peaked back in 2011 along with Gold and started a furious uptrend in early 2016 along with Gold. My research on the “Yen Carry Trade” indicates that all the big banks, since 2011, have been massively borrowing the Yen at zero interest and using the funds to short the Gold and the rest of the PM Complex….
The Yen rising early in 2016, along with Gold, required the banks to unwind their Yen Carry Trades in a massive short squeeze. This unwind also limited the funds they used to short Gold.
It would appear that the Yen Carry trade is now back in vogue until perhaps the Yen’s YCL is behind us.