CLICK ON CHART TO ENLARGE
The Yen could well be the worlds least loved currency, due to its 25% decline over the past year, as bullish sentiment stands at just 17%. The decline in the Yen has been greeted by a large rally in the Nikkei (strongest rally in the world) and the S&P 500 didn’t have a bad year either (up close to 30%).
The 25% decline in the Yen has it on its 38% Fibonacci retracement line and a support point tying in some of the most important “Emotipoints” (Emotional turning Points) over the past 16-years. The Yen hasn’t visited this support line since 2007, when it rallied strongly!
Could a rally in the Yen take place here? Traders sure don’t think so, as a large amount of investors are short the Yen at this time. If the Yen does rally, it will catch a ton of investors by surprise. Short cover rally potential?
–
-
