June 15, 2010 – Is This Currency Making a Top?

Featured Trades: (YCS)

2) Is This Currency Making a Top? As I am a fundamental guy, I don't normally pay attention to technical analysis mumbo jumbo, except when the conclusions are screamingly obvious. I may be wrong, but isn't there a head and shoulder's top setting up of the yen chart below? If Charles Nenner is right, and we do get a summer rally (click here for his call ), then you could also expect the Japanese currency to take a decent dump. With a new government in place with a publicly stated goal of weakening the yen, you can certainly see the fundamental case for this taking place (click here for my last piece on this trade). Take another look at the leveraged short yen ETF (YCS).

Japanese Yen