This is a train wreck that is a well-anticipated position. The most recent COT Report for the yen shows specs to be short 173K, down a few thousand contracts, but still very large. The short side of the yen looks like a sure thing, but is the trade overloaded on the short side?
Granted the yen was lower after a sell-off in their equities, but the market failed to recover after bearish US NFP report.
There was a reversal on last Friday's daily chart (January 10 2014) and the weekly chart also looks like it has a top. Perhaps this market will find some new bears to support the 104 handle; however, the market action is bearish and a retreat to 101 seems possible.
Granted the yen was lower after a sell-off in their equities, but the market failed to recover after bearish US NFP report.
There was a reversal on last Friday's daily chart (January 10 2014) and the weekly chart also looks like it has a top. Perhaps this market will find some new bears to support the 104 handle; however, the market action is bearish and a retreat to 101 seems possible.