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25 Mar 2013
Forex Flash: Abenomics well known and discounted in FX market - BBH
FXstreet.com (Barcelona) - Marc Chandler, Global Head of Currency Strategy at Brown Brothers Harriman holds a contrarian view of Yen, mainly because he feels that Abeonomics is well known and well discounted in the foreign exchange market.
He writes, “We think this means that the bulk of the yen's weakness is found in the rear view mirror. The uptrend in the dollar against the yen, drawn off the mid-Nov lows, when the election was announced and the early Dec lows and late Feb lows comes in on Monday just below JPY94.00 and is rising about 11 pips a day. Looking at the technical indicators, the RSI for is difficult to read, but there is a dollar bearish divergence in the MACDs.”
He writes, “We think this means that the bulk of the yen's weakness is found in the rear view mirror. The uptrend in the dollar against the yen, drawn off the mid-Nov lows, when the election was announced and the early Dec lows and late Feb lows comes in on Monday just below JPY94.00 and is rising about 11 pips a day. Looking at the technical indicators, the RSI for is difficult to read, but there is a dollar bearish divergence in the MACDs.”