Yen Lays Foundation for Rally Toward 100 Per Dollar, Charts Show
- Market postioning, momentum studies in favor of more yen gains
- Technicals open door to high volatility move to 101.20-100
Yen Lays Foundation for Rally Toward 100 per Dollar
This article is for subscribers only.
The yen’s rally may have legs. The currency is laying the foundations for a move toward 100 against the dollar, according to technical charts and investor positioning.
Its gains last week amplified the risk of a full reversal of the yen’s slide in late 2016, when it went from 100 to 118 per dollar after the U.S. election of Donald Trump. Speculative positions show traders have strong exposure to a drop in the yen, increasing the chances of a high volatility rally in the first half of this year if shorts run for cover.