Friday, December 13, 2013

Yen breakout | All trades successful

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, Shinz┼Ź 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.

Today is the last trading day of the week, and next week sees the showcase of the Federal Reserve’s Monetary Policy Statement and press conference, on Wednesday. The world, and in particular the markets, will be watching and listening. 

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