On Wednesday, I wrote the following about the yen:
The weekly yen chart shows that prices are at important levels. After
printing negative GDP, it's standard practice for the underlying
currency to weaken. However, the yen is also a key currency that is a
primary safety trade and carry trade play. As such, there's a decent
bid for it.
The yen has now moved lower. Consider these charts:
On the daily ETF, the 122 price level was providing important technical support. Prices moved through that level yesterday. Also note that prices are now below the 200 day EMA, as are the shorter EMAs. In addition, the EMAs are now bearishly aligned.
The weekly chart has printed a very strong candle on higher volume.
Considering Japan is now facing its fifth recession in the last 15 years, they need correspondingly cheaper currency. It looks like they're finally getting it.