The Japanese Yen has been very weak vs the US dollar of late. The Bank of Japan and Japans new Prime Minister Shinzo Abe plan to flood the Japanese economy with cash in hopes of stimulating the economy out of a 20 year deflationary recession. Big money is now flowing out of Japan resulting in a weaking Yen vs the US dollar. Long term the Yen may have topped vs the US dollar. It appears to have based and we now may be entering an extended period of the Yen declining vs the US dollar.
There may be a good entry opportunity to go 2X short the Yen if we get a short term pullback for YCS to support at $48-49US. Jack Crooks of Blackswan Capital is not so sure there will be a pull back and suggests placing an On Stop Buy at $58.05 which is just above the Friday 01Feb high.
YCS is the ProShares UltraShort Yen ETF. It is an inverse ETF with double leverage. So when the Yen falls 1% against the US dollar, YCS rises roughly 2%.
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