Yen in Midst of a Major Trend Change

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 Chart

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

 

Tags: $USDJPY $MACRO $FXY $YCS $YCL

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.

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