A Yen For Help – Do Not Bother

In a bearish frenzy, the 17-member single currency remains somewhat under pressure this morning, slicing through a different handle, while contemplating testing longer-term support levels well below the sub-1.30 level. The question remains, will this broader bid for the "mighty" dollar, fueled by the Abenomic Yen's move outright above 100 and now 101, last? Breaching ¥100 has garnered a lot of attention and will surely keep the pressure on the Japanese government to back up the Bank of Japans actions with perhaps an aggressive economic reform program. With a Fed policy that is loose, and US data reducing the prospect of further action from the Fed while other central banks remain more active in easing, has helped renew demand for the dollar in general. But, is there more?

Historically, 'big dollar' gains in the US often take on the feel of a patriotic bid and are rarely maintained. In this case, the dollar bid could shift, rather naturally, into a more risk-on feel that is...