Wednesday, September 4, 2013

Yen Continues Consolidation

The yen dropped sharply after Abe announced that yen devaluation was part of this three part plan to return Japan to a period of growth.  From peak to trough, the yen lost about 27%.  However, for the last few months the yen has been consolidating losses around the 38.2% Fib level of the 07-11 rally.

The real test for Abe will come when the yen breaks this pattern.  Ideally, we'd like to see prices trade sideways.