U.S. Dollar/Japanese Yen (USD/JPY)

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.  

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