Last week the Japanese Yen made an all-time high against the USD. However, the rally didn’t last long as the G7 started intervening along with the Bank of Japan to stabilize the yen.
Such a strong yen cannot be good for a country that’s not only trying to work through the catastrophic events from two weeks ago but also still battles with longer-term structural problems in its economy.
Note the very long tail from last week’s trading of the USD/JPY on the first chart below, which is a weekly chart. Now, on the second chart below let’s zoom in on an ETF called the YCS, which is the ‘ProShares UltraShort Yen and correspond to twice (200%) the inverse (opposite) of the U.S. Dollar price of the Yen.
The very bullish candlestick formation called a morning star pattern.