The Bank of Japan simply cannot raise interest rates enough to make the yen attractive because there’s just too much debt in Japan. They literally have been a bug looking for a windshield for years and looks like they’ve finally found it. Short-term pullbacks, especially those caused by volatility in the FOMC meeting, will more likely than not end up being buying opportunities.
The 50-day EMA sits just above the 152 yen level, an area that I don’t think we will break down through again. If we did, that would be substantial. But even then, I’d have to see what the fundamental situation is. At this point in time, I’m a buyer of dips in anything denominated in yen, because quite frankly, I think this is a market that’s got a long way to go. And we could be talking for many years.
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