This Currency Is Set Up for a Major Reversal

Sentiment is near its most bearish level on record for one currency. But the last time we saw pain like this, it took off on a multiyear rally... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] This Currency Is Set Up for a Major Reversal By Brett Eversole --------------------------------------------------------------- It might not be front-page news... but the Japanese yen is in the middle of a collapse. This downturn has been dragging on for years. The currency hit its most recent peak in early 2021. And it has gone nowhere but down ever since. All told, the currency has fallen 34% in three and a half years... a brutal decline for a major global currency. But one sign tells us that a reversal could happen soon. Sentiment is near its most bearish level on record. And as I'll explain, the last time we saw pain like this, the yen took off on a multiyear rally... --------------------------------------------------------------- Recommended Links: [Until Midnight: This Could Set Off the Biggest Market Shake-Up of 2024]( The man who predicted the COVID-19 crash and the 2023 stock rebound warns you could soon be blindsided by a rare market setup. But if you know what's coming, you could double your money over and over again... as he has already shown 33 times. Until midnight tonight, [get the full details here](. --------------------------------------------------------------- [Get Your Money Out of U.S. Banks Immediately]( In 2022, Marc Chaikin warned: "A major shift in our financial system could lead to a RUN ON THE BANKS in 2023." Three months later, we saw the biggest bank failures since 2008. Today, Marc warns it could soon happen again. [Click here to learn more](. --------------------------------------------------------------- Calling this a "currency collapse" is no exaggeration. The yen has not only lost a third of its value... but it has also dropped to a three-decade-plus low in the process. Take a look... The last time we saw these levels was in 1990... just as the 1980s Japanese bubble was beginning to burst. Plus, as the chart shows, the recent decline has been quick and severe. Lots of folks are worrying the yen could fall much further from here. But that's the wrong assumption to make right now... You see, everyone believes the decline will continue. They've left this currency for dead. And that means sentiment is set up for a major reversal. We can see this clearly by looking at the yen's Commitment of Traders ("COT") report... This weekly report shows us what futures traders are doing with their money. When these traders all bet together on the same outcome, the opposite tends to happen. And right now, they're betting against the yen at a wild pace... The COT has fallen alongside the yen in recent months. It just hit its most negative reading since mid-2007. And as it turns out, that was also a darn good time to bet on a yen reversal... The currency was falling back then as well. It was down nearly 20% in two and a half years. But once sentiment hit an extreme, the yen started to rally... It moved higher in value for more than four years. The overall gain was 63% – a huge return for a major currency. We could be on the cusp of a similar move right now. The yen has crashed in recent years. And now, futures traders are betting against it at crazy levels. That means a reversal is likely. And if it ends up being a sustained rally, the yen is likely heading much higher than we've seen in years. Most folks don't expect a turnaround from this currency right now. But the contrarian bet is that we should see a much stronger yen in the months ahead. Good investing, Brett Eversole Further Reading Hong Kong stocks recently went on a rare winning streak. Specifically, the benchmark Hang Seng Index rallied for 10 straight days. And according to history, similar win streaks have led to double-digit upside... [Read more here](. Chinese stocks have been in a downtrend for years. And investors have steered clear as a result. But now, these stocks are in the midst of a "blood in the streets" moment... which means it's time to start paying attention... [Learn more here](. --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers' feedback. To help us improve your experience, we'd like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. 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