Yen in Midst of a Major Trend Change
- Posted by TheArmoTrader
- on December 27th, 2012
Besides the Fiscal Cliff, the only other $MACRO event really in the headlines is Japan. With the election of Honest Abe, the Yen has been under some major pressure over the past few weeks. In fact, the $USDJPY has rallied so much, that it has began a major trend change.
The $USDJPY has broken out of a major bullish pattern on the monthly time-frame. The inverse Head & Shoulder pattern that developed over the past 1.5 years has finally been breached. There is some resistance at the 87.20-88 area, however, over that, we could see another leg up to the ~94 area quickly.
Even though I don’t see how new rounds of monetary easing (basically the same old, same old) is going to somehow help the economy (might help with exports but Japan’s problems don’t all lie there), as a trader, you do not fight a strong pattern/price action.
$USDJPY Monthly Chart
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
Jerry Khachoyan is currently an undergraduate student at UCLA pursuing a degree in Political Science. He started trading in September of 2008. He concentrates on using technical analysis and reading the tape to enter the best risk/reward trades. The stock market to him is one of the greatest inventions by man.
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