Yen = Contrarian Buy or Trap?

I hope everyone had a good weekend. I spent mine decorating our Christmas tree and reviewing last week’s price action. One of the things that has stood out to me over the  past few weeks has been the hatred for the Japanese yen. My article for TraderPlanet this week discusses the contrarian setup taking place in the yen as well as the economic forces that are having an impact on the currency.

Here’s a blurb:

As you can see, when the difference between commercial traders and large traders has gotten extremely wide with commercials being net-long the yen has typically found a bottom, as in early 2010, 2011 and March 2012. Normally the large and small traders don’t win these types of battles, especially when going against commercial traders as net-long as they currently are.

However, there are some strong winds that are blowing against the yen contrarian traders. The primary headwind for the yen is the large amount of monetary easing that’s being done by Japan.

Head over to read the rest: Japanese Yen: Contarain Buy or Trap? (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+.

About Andrew Thrasher

Andrew Thrasher, CMT is an Investment Analyst for an asset management firm in Central Indiana. He specializes and writes about technical analysis as well as macro economic developments.