(98,70) The USD/YEN confirmed another weak closing below the low of the previous week. It is now the 3rd week this dollar is closing below the low of the previous one; the first week was even a key day reversal and in the candle stick it formed and confirmed a bearish engulfing pattern. All this should take the DOLL/YEN lower. We made a quick analysis this morning. In the last 33 year, therefore from 1980, when the dollar made a similar move, even with just a negative week reversal, therefore even less strong, the dollar has always moved lower, at least below the day 3 low. Therefore we should be able to see a 95 undershooting after the present correction that could go as high as 100,35 if not even 101,50: only a move above 101,50 will probably suggest something is wrong!! The indicators of the weekly chart are negative while those of the monthly one are positive but overbought showing potential negative reversals, another negative signal!! On the downside we expect a test of 93,50 if not even a move toward 90,50 which is the 50% retracement of the previous move up 77,13 – 103,74!!!!
Read the full report: USDJPY 06.10
Future Trend