Traders have given up on the yen ever rising again

Despair in the yen

The yen just can't catch a break. Heading into the end of last week, it sunk versus the U.S. dollar on 13 out of 14 sessions. That kind of losing streak has rarely been matched.

The others generally occurred around significant lows but not imminent ones. The losses have clearly weighed on sentiment. The Optimism Index for the yen has dropped to the lowest level in nearly a decade.

The Backtest Engine shows that a reading of 15 or below leads to quick snapbacks, but most were unsustainable. Only structural bear markets have generated this kind of despair. During structural bull markets, the Optimism Index didn't drop below 20, or if it did, it quickly brought in buyers.

Other indicators show that sentiment is extreme in the yen just as it's entering what has been a seasonal turning point.

A sentiment-based buy signal for bitcoin

The Crypto Fear and Greed Index reversed higher relative to its recent range, triggering a new buy signal for Bitcoin. Dean noted that the model, created by Alternative.me, calculates a weighted sentiment measure for bitcoin.

The trading system ranks the fear and greed index range over a defined period and identifies times when sentiment cycles from pessimism to optimism. 

This signal was triggered 8 other times over the past 3 years.