Weekly Yen has had three pushes down. The third move down will have appearance of bear trap (basis the futures) if Yen rallies back above 82.90.
This should lead to test of upper end of range 88 - 89. Basis the Cash market, looking for test of 114 - 115. THIS IS A POSITION TRADE and has potential to go a lot further then these initial targets. Easy stop on whole position at 82.20 basis Sep yen sets up incredibly good risk reward.
I noticed about half the foreign ETFs made new weekly highs and about half of them put in a lower high. This is not dissimilar to Nasdaq making higher high while SPs put in lower high. Gotta believe these bonds are giving power feul message with todays trend day up - either there was one heck of a short squeeze goign on or more likely, asset reallocation.
This was the first speech in a long time that I have seen Bernanke come across as a total wimp. Even the blurb on briefing.com called his speech "academic" at best. (translation, he is too chicken to say anything). In the past, he has jawboned in the favor of strong dollar policies (again, jawboning at best). I thiink he is well aware that his back is totally against the wall with the dollar in this round.
Cash Commodities continued to catch fire across the board (even a bounce in Nat Gas and Hogs...LOL) Housing market can show ZERO sales and inflation can still rise simply due to a declining dollar. Stagflation long overdue?
BUY THE YEN - Japanese may be only ones able to make good on debt. There is a REASON some currencies pay a higher interest rate, just like there was a reason subprime mortages were yielding higher returns. (!)