YEN TO BENEFIT FROM US DOLLAR WEAKNESS
The Japanese currency has recently been flexing its muscles, and will benefit proportionately more from any perceived Dollar weakness. On the charts USDJPY looks likely to break out of its short-term rising bottom in the 110.90/00 area. Dollar/Yen has been declining for a week now, with a few half-hearted attempts at profit-taking/recovery. These have been about as convincing as a politician’s apology, and inevitably a few people will get suckered into this. A close below 110.70 sets the new target at 110.25, with 107.00 as the next area where natural buying interest, as opposed to profit-takers, should be found.