In between his excursions to waterfalls and the Mayan ruins, Forex Kong’s latest post really drives home the point of the ramifications of a strengthening Japanese Yen.
The long Nikkei/short Yen trade has been a dead sexy one since last Thanksgiving. But if it continues to unwind beyond a garden variety correction (not so orderly thus far) the implications towards global risk appetite are concerning, to say the least.
Here is an updated look at the Aussie/Yen cross, where you can see the pressure the strong Yen is placing on a global commodity currency (as well as against the U.S. Dollar and Euro).
Kong might short the SPY on Friday. So stay tuned!
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