Wednesday, June 17, 2009

A Different Angle on the Yen

A few weeks back we took a look at the Japanese Yen using the symbol $XJY compared to various currencies. To keep the focus on the yen, we kept $XJY as the numerator and the other symbols as our denominator. Here is a look at Yen/Gold:

The archy thing from this February to June looks a lot like the archy thing from the same time last year. Thats not to say that we'll have a superspike this autumn like last autumn, but a run up to at least the 200 ma at .12 or higher seems possible.

Looking at the weekly chart below we can see that the 2007 pattern was similar to the 2006 pattern. Maybe 2009 will mirror 2008 for a little while longer and on a slightly smaller scale? I would be surprised if the rate made it to .15 or above, although only a few years ago "above" was the norm.