Feb 21, 2005

Pop Quiz - Yen

This is from Bloomberg,

Yen May Fall as Traders Most Bearish in Two Months

Feb. 21 (Bloomberg) -- The yen is likely to fall against the dollar and the euro as currency traders are the most bearish they've been about the Japanese currency this year, according to a Bloomberg survey of strategists, traders and investors.

Forty-seven percent of the 72 participants polled from Sydney to New York on Feb. 18 advised selling the yen against the dollar, up from 40 percent a week earlier and the most since Dec. 12. Forty-two percent said to sell Japan's currency versus the euro, up from 29 percent.

Lets see on Dec 12th the Yen was... drum roll... 104.79. It then took until Feb 7th for the Yen to fall below the 105.15 low from Dec 9th. If they are even more bearish now does that mean the recent low (106.84) will last at least 3 months?

Probably an interesting data point though I would write a different headline.

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