Hi All !

Well…today we catch up with our old friend, the ”Big Green Monster!”

The “Harbinger of Doom!”

The “Bringer of Mayhem and Terror!”

“But CVJ!…do you mean that Monster from the movies?”

“No!”, I reply…”The Japanese Yen!”…  

Once again my friends…our Risk Aversion scenario is seriously back on the table!

Did we really think the big “everything-will-be-fine-Rally” of the Dow and the S&P 500 Indices last week would make us feel all warm and fuzzy inside?

Of course not!…but our worldwide Media would surely have us believe this.

And once again…they go home disappointed from another Manic Monday!

(Here it comes…the “Crazy CVJ’ers” are back to support me in my world famous Rhetorical Questions…)

“But are WE disappointed???”

NO! 

We are Traders…and do not consider such media content in our criteria for working with Price action and Exchange Rates.

The Japanese Yen continues to move along with the Dollar due to safe haven inflows of being the lowest yielding Currency Instruments.

As always…if we were in a Risk Appetite climate…we would be focusing on the Carry Trade concept and selling Yen off by the boatload.

Instead..we continue to have Fear and Insecurity…translating into Risk Aversion…which translates into buying Yen by the boatloads.

Either way…a pretty heavy Boat!…

Now..the ideas floating around that I alluded to yesterday are that the Bank of Japan is becoming suspect of such strength in their own Currency.

When we see this, Intervention by the Central Bank is certainly a possibility.

The strong Yen is deeply detrimental to Japanese Exports as a whole…despite the overall benefits to various sectors of the economy.

So we have a conundrum here that the BoJ needs to keep a watchful eye on as we move along.

Now…lets move onto the USD/JPY Dollar Yen itself, and see where we ventured from the Sydney Open Sunday and all day Monday.

Here we are back on our Daily view, and I kept my Symmetrical Triangle intact to emphasize the downside momentum we saw today.

(click once for captures)

 An Update a few hours later…take a look about 10:25 GMT… 

There is a high probability here that we will, indeed, see these retracement corrections to the upside here….and we are seeing it begin in the recent hourly candle above in the Update.

We’ll see if it prevails this morning as we move along.

Remember…with strong unidirectional momentum…we will lose energy and need to rest a bit…just as if we were descending the mountain.

Do you ever notice how much more difficult it is to walk down the mountain than it was to climb it?

Our equilibrium is off balance, and we need to be much more attentive so we do not fall and tumble.

Our Yen strength is “You and Me walking down the mountain all day long”…we need to take a rest at one point.

In my view…I will continue down the mountain after I rest…as I am a “Bearish” climber with my buddy, Godzilla.

I personally think he is hungry for a Test of the Fib Low there @ 90.90 on our Daily view!

If you prefer to be a “Bullish” climber, then make sure Godzilla has a handle on Tokyo around the 96.00 Resistance handle and above!

Our Big Green Monster needs more of the City to devour…so let’s see which direction he heads in!

Hmmm…I better make sure the Nissan Truck is in the garage!…hee hee…