Saturday, June 13, 2009

Japanese Governemnt bonds - Montly chart - 13.06.2009



Monthly JGBs - there is the Long view - I have read some time ago about very intelligent bond traders that have been holding shorts in JGB for years in anticipating a bearish trend to ensue.

Well, seems it takes more than patience to wait until this actually meterialises. The 'lost decade' and the huge debtto GDP of Japan are still not enough for the JGB to break out of the comfortable 130 - 140 range, roughly said.

Sure enought Gravity has to be felt at some point but I can't divine future so will wach for potential developments. As to purely technicla reading of this chart ther eis actually some probability that we see a Golden Cross of the 34 and 55-Month MAs and another test of the 140 level.

After all the Yields in JGB might just again go down as the deflationary pressures even after a decade of printing money are again on the news. Let's see if the immediate Resistance at 137.70 (89-month MA) will be easy to regain and then we can review the possible developments.

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