Daily Pfennig: Yen Rally May Pause

Daily Pfennig: Yen Rally May Pause

From Chris Gaffney at the Daily Pfennig:

Both Chuck and I have had positions in Japanese Yen for some time now, so you will have to excuse us if we seem a little excited (relieved) that the yen is finally moving up. But as always, the move in yen won’t be a one way ride. News released last night could put an end to this recent rally as there is the makings of a political standoff in Japan. Japan’s main opposition party said it will reject Prime Minister Fukuda’s candidate to lead the central bank only a week before the current governor’s term expires. This may lead to the central bank’s top post becoming vacant, but is that really so bad? I can think of a few central bank heads which we would probably be better without!!

Both the Yen and the Swiss Franc were acting funny, down quite a bit in the last 24 hours – enough for me to take off my positions in both for the time being. I think this run may be over for now.

On the bright side, grains are rallying and rice is looking good again, with a new breakout after last week’s sharp correction.