SubscribeDaily Futures Commentary August 27, 2009
Thursday, August 27, 2009
The September Japanese Yen cleared an important technical hurdle overnight and is now in a position to challenge the July top at 1.0909.
Japanese investors have been repatriating funds invested in China on speculation that the Chinese financial officials will attempt to curb reckless lending practices in the country. Funds are being moved out of China for safety reasons as investors feel new Chinese practices will slowdown the pace of growth. With their investments at risk, Japanese investors are seeking the safety of the Japanese Yen.
At this time it is only speculation driving investors to repatriate, but the aggressiveness of the move into the Yen could be signaling that a move by the Chinese government to place restrictions on over capacity could be imminent. The action by Chinese officials will affect the entire Asian region since China is the key economic driving force for Asia’s economies. Additional support for the rally in the Yen is a new tax law which is encouraging Japanese exporters to repatriate earnings.
Technically, the September Japanese Yen remains in an uptrend. Upside momentum is building now that the Yen has overcome …
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