Today's GDP report and higher-inflation data for the U.S., coupled with recent disappointing Japanese-export data, GDP growth, and re-flation figures could be igniting a "perfect storm" for USD vs. YEN (lower YEN) in the upcoming weeks. We remain long YCS (UltraShort YEN ETF) since late-May in anticipation of a resumption of the intermediate-term up trend in USD vs. YEN...
This morning's stronger-than-expected Q2 Goodrich Petroleum Corp. (GDP) report, accompanied by an uptick in inflation has goosed USD/YEN to the upside 1%.
More significantly, however, is that the upmove has thrust USD/YEN out of its near 8-month high-level, bullish coil pattern into a new upleg within the larger 2+ year bull trend.
As long as 101.00 remains intact as key support, USD/YEN has started a new upleg that should climb to new highs above 105.50 into the 107.00-110.00 target zone in the weeks and months directly ahead.