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Possible Head and Shoulders in Dollar-Yen
The dollar has broken down against the yen. Although many talk about safe haven role for the yen, this seems to be a misconception. Investors are not buying the yen to escape the turmoil of the markets. The yen's strength itself is the turmoil. The yen was used as a funding currency to purchase risk assets, like equities, emerging markets, etc. As those risk assets are being liquidated, the funding currency is bought back. Earlier today, the Ministry of Finance reported the weekly portfolio flows for last week. Japanese investors bought JPY96 bln of foreign bonds and stock, while foreigners bought JPY28 bln of ... (full story)