“Trend following traders are jumping on the bullish Yen bandwagon as the currency is currently hovering near highs not seen since October 2014 vs. the U.S. Dollar. Right now it appears that traders do not fear any currency intervention by the Bank of Japan (BOJ) to help weaken the value to the Yen despite the difficulties a stronger yen is causing the country’s exporters,” according to OptionsExpress.
The dollar has been weakening against other developed currencies, the greenback has strengthened against emerging market currencies, notably against commodity producing countries and China. However, the greenback has recently shown signs of perking up, but that is not deterring some traders from making bullish yen bets.
“Prices are currently at their highest levels since October 2014, but appear to have become overbought as the 14-day RSI has broached 70. Upside resistance is seen at the October 15 high of 0.9510, with support found at the March 17 high of 0.90565,” adds Options Express.
CurrencyShares Japanese Yen Trust
