The ¥: is has charged up the track from it's low of 120.05 against the US$. I closed out my short there with some dissappointment. From the Daily Pfennig:

While the U.S. snuggles up tight to Japan and pats them on the back telling the world that yen weakness is OK... The European leaders aren't feeling the same love for Japanese yen. If you think the yen is weak VS the dollar, you should be a German manufacturer and see how awfully weak the yen is VS the euro!

So, some rumors were going down, someone's underground, no wait! No Eagles this morning, we only want HAWKS! Anyway, rumors were circulating last week and early this week that the G-7 ministers would include a discussion on the weakness in yen, and add a note in their meeting ending communiqué. This had yen stronger for a couple of days... But with Japanese officials throwing cold water on the rumors... Well... We get yen weakness again.

Of course the conspiracy side of me says that the Japanese officials have been briefed on the G-7 meeting, and took this time to jawbone the yen weaker, know all the while that the communiqué will strengthen yen... Same old Japanese.... Get it weaker now, so that when the communiqué helps strengthen the yen, it will merely offset the weakness, and we end up back in square one! UGH!



I'm obviously playing the G7 meeting on this trade. Perhaps I was a week early. Keeping out of USDJPY for now. The real volatility is in EURJPY. I'm placing a $100K short there to keep my finger on the pulse. Still playing the G7 there's no way the €|¥ combo is off the table.