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The Yen, Flows, and the Nikkei
The dollar often appears to be confined to a trading range against the yen. This was the case from last December through mid-May. When it looks like it is trending, like from mid-May through the end of last week, it often is moving from one range to another. Typically what happens is that initially the new range is overshot a bit. The dollar reached almost JPY126 last week after having bottomed just below JPY119.00 in mid-May. It has closed only once above JPY125, and that was at the end of last week. It has slipped about 1% already this week. Technical indicators suggest some near-term caution is in order. The RSI ... (full story)