Yen Update

As promised, I am going to check in periodically on the price action of the Japanese Yen (using FXY as a proxy). And so far, 126 held to the downside and 128 was broken through on the upside. From a macro standpoint, shorting the Yen seems really interesting and the fundamentals are going to line up at some point. But, as the savvy investors that we try to be, there really is no reason to rush in until the wind is at your back. And, at the very least, until there is greater clarity with respect to Europe, Japan will not be the focus of attention (despite its recent announcement about a budget that would make the most dyed-in-the-wool Keynesian blush). In any event, here's the chart to back up the story about why it simply is not time yet.