Yesterday the USDJPY pair
broke though an important resistance, moving up to in excess of 103 Yen to the US currency. Of
course, while this move is up, it indicates a steadily weakening Japanese
currency. We can expect this tendency to continue. The fundamentals, of the
approach of the end of Quantitative Easing (QE) in the USA , and the
easing policies of the Japanese Prime Minister, Shinzō Abe, collectively known
as Abenomics, indicate that this should be the case.
So does the Technical
Analysis story. As indicated previously, a breakout
from a pennant pattern, such as the one that has formed so elegantly on the Yen
weekly chart, above, could in theory mean a future rise that is commensurate
with that which took place during the “flagpole” part of the development of
this formation, when the rate moved from 78.00 to just under
100.00 Yen to the US dollar.
All trades successful
All the trades that we had
taken on and discussed in these commentaries, which are those involving the Australian dollar (Aussie), the New Zealand dollar and gold, as well as the Yen, performed very well indeed
yesterday. Even the Euro, which the Silver
Trigger still holds back from taking a position in, although our outlook is
bearish, went a little way in the right direction during the main sessions.
No comments:
Post a Comment