YENbublicous

Have you ever randomly encountered an old girlfriend at some party? You start talking and a guy comes by. She introduces him as her fiancee. You look at him, he is older and uglier: and you want to ask only one question---"Really, that guy?!!". If I was the US dollar this is how I would feel about the Japanese Yen. It looks like the investors are in love with a currency that is as unsexy as a currency can be. And not only is it gaining against the dollar, in the last week it has also gained against the EUR. I will be looking for a rational explanation this week, but I doubt it can be found in the fundamentals. This makes me think that there is a Yen bubble building up, that can easily burst very soon.