Eye on the Yen

Indeed, as we told subscribers to expect, the G-7 (US, Japan, Germany, France, the UK, Italy and Canada) decided to intervene with the Bank of Japan on Thursday to "stabilize" the Yen.

Now the real battle begins, but as I have mentioned lately, the plight of the Yen since 2008 (its relentless climb, that is) in defiance of otherwise dismal Japan fundamentals, which were negatively exacerbated by the recent earthquake and tsunami damage, desperately calls for a lower currency to enable the Japanese economy, the Japanese Government, and its dynamic people to recover.

Have a look at the daily USD/Yen chart from January 2010 to the present, which shows a consolidation wedge pattern interrupted by the March 16 plunge to a new historic low at 76.42, before yesterday's intervention returned prices back within that wedge at near 81 1/2.

ETF traders may want to watch the ProShares UltraShort Yen (YCS).