By John Galt
July 20, 2011
Until 4 pm today the Yen was surging against the US Dollar as it appears another flight to safety is underway, including a flight away from the Euro and Dollar thus distorting the normal flight to safety most perceive in the markets. If the Yen breaks 78 and the BoJ decides to stand on the sidelines while capital floods into their currency along with the Swiss, it is a direct indication that the default risk in Europe has grown as well as the United States.
This chart and the USD/CHF (Swiss Franc) could tell the tale of the tape for equities and more over the next 48 hours as rumors swirl in the Eurozone….