Sunday, December 1, 2013

The Yen is weak currently

Commodities trader Dennis Gartman believes the recent dip in the oil price, after a deal was reached between Iran and six world powers to curb its nuclear program, shows just how weak the yen currently is.

"This news alone should be supportive of the yen, for Japan is of course the nation most seriously exposed to the uncertainties of higher crude prices" he said in a research note on Monday. "The fundamentals of the Bank of Japan's aggressive expansion of its balance sheet trumps even this fundamental benefit...we are more bearish now than we were previously."

Gartman has a target price of 125 for the dollar-yen, a level it hasn't seen for the last eleven years.