We know, we know – the digital ink is barely dry from our take on the bond market, then we’re turning our attention to currency markets – but hey, you can’t really have one without the other. After all, what do you think all that currency market movement is about… the difference in what can be earned in each currency (via interest rates) relative to one another. To get right into it – the currency markets have been a little crazy as of late. Like crazy crazy. The USD had one of its biggest trends higher in 2014, and vice versa with the Euro. And while that trend was happening, the Swiss Franc (without warning depegged) itself from Euro. All of that calmed down a bit with the USD selling off about 7% from its March highs, but now we have the Japanese Yen calling for some attention.
Seems our old friend Yen Futures are reaching 20 year lows…
(Disclaimer: Past performance is not necessarily indicative of future results)
Chart Courtesy: Finviz
Or if you’re more of a Forex person and used to looking at it as number of Yen per dollar – then it’s breaking and 18-year resistance line to the upside: