My recent post in one forum.

This is one my recent post in one forum which I believe is important,
the original post is altered a little bit.

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I am not surprized that Yen rallied. What I am surprized is the speed of the rally. I expected the process to be looooong, about 2-3 weeks or so.

There were (technical) wedges on most currencies against JPY. So the soar of JPY was something that will happen for sure.

Yen - up, means carry trade - down.

Then the huge funds will began to sell, because of JPY. Then, because they also use leverage, they need to sell 10,000 $ in order to get 1,000 $ from their money (assuming leverage 10:1). And they selling everything - stocks, bonds, morgage back secrurities, gold stocks.

And because usualy the funds do not invest in Gold directly (at least this is what i believe), the gold is not that down.

From the other side, the USD is higher than EUR. I think the top was placed yesterday, but this does not change anything.

USD - up = Gold - down.

So we have gold down too, but as I said yesterday, is not that much down.

However I believe is time to add more. I will not add any, but this is only because I am out of money in my brokerage account.

Let me know your comments on this.

Nick.

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p.s. Pure speculation, but I believe BOJ (Bank of Japan) will do something stupid very soon, to help USD, which will elevate all currencies against JPY.

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Some charts from yesterday:

1. AUD/JPY huge fall
2. Gap in Yen index
3. Yen index, weekly - break or False break?