The agenda was all about Yellen and the dollar today but trading was all about the yen.
- GBP/JPY rose to a four-year high
- USD/JPY hit a two-month high
- EUR/JPY hit the highest this month
The commodity currencies also gained against the yen but what’s surprising is that they’re not higher with the S&P 500 hitting record highs. At some point, the optimism in US stocks will translate into investment abroad where growth prospects and interest rates are higher.
Probably the best sign for yen bears is the Nikkei, which looks like it’s breaking out simultaneously to USD/JPY. Doubleline bond kind Gundlach has a similar take on the Nikkei.
Nikkei 225 breakout
