The Yen Has Further to Fall
Last Thursday, I wrote a column explaining why the Japanese yen is setting up for a big fall. Then on Monday, the yen began to slide sharply, and today the currency hit a four-week low against the U.S. dollar and the British pound. A little luck never hurt anyone, and undoubtedly there was some luck involved in the timing of this call.
As yen weakness continues to unfold, it is becoming clearer that this move could have legs. Last night on CNBC Asia, I called for a short-term move into the low 80s for the U.S. dollar-Japanese yen trade, and longer term into the low 90s. In addition to the factors enumerated above, there is another reason to believe that Japan is serious about fighting yen strength. Overnight, we saw the re-emergence of a figure who was instrumental in Japan's interventions in 2004....365 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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