Loading ...Yen Yearly Cycle Low
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:
https://goldtadise.com/?p=383864
https://goldtadise.com/?p=382241
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 had available 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.
Excellent work Surf
I notice that you entered the trade when the Yen broke below your blue uptrend line in late Sep – early Oct making 04 Oct quite a significant date! I wonder what was the catalyst?
Gold broke below it’s uptrend (from the 03 Dec ICL) at the same time, although gold had provided us with a clue that it was in trouble by breaking below the uptrend line from the 30 May ICL in early Aug
Certainly the Yen is showing no signs that it will find an ICL until it’s current IC is of similar time frame to the IC from 03 Dec last year – which will put it around the end of Nov 2016
Thanks Surf…That’s a great Trade…and the best explanation of why Gold and the Yen are Joined at the hip.
Great stuff