Chart compares history of Yen vs DJIA. As you can see, Yen is near a 30 year ascending primary support line. Chart also shows that after periods where US markets increase and Yen decrease to a point of historical support, thereafter you have U.S. Markets consolidation or peak.
Here also are horizontal lines of support / resistance.
Right now would be a good time to look to enter Yen.
Excellent chart JR - I'm glad it was highlighted in the weekly letter so I could see it! Really good work.
QuantitativeExhaustion
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Time to get in Yen. This is your moment.
QuantitativeExhaustion
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I do believe if Yen does crack ascending support we could see U.S. markets follow for an end of year correction. Thereafter, we will see a fast YEN reversal and a slow and steady US market rise.
SMP99
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Nice charts. I agree that a stronger yen might be a catalyst for a quick correction back half of year.
QuantitativeExhaustion
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So your feeling Yen is either ready for reversal or near an area where we could see the rally take place. Also, thereafter U.S. markets will correct giving you two trades second half year.
SMP99
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Correct. I think that would give US market some trouble. I think this could be an initial catalyst for move lower. Depth and length from there I think would be dependent on other factors.
SMP99
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Trendline has been important going back to late 70's. Hasn't been tested in 17 yrs. the first touch of this line with current sentiment seems....it seems unlikely to break down right now. If it breaks, seems more likely after a quick rally and reversal.
QuantitativeExhaustion
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I agree with you. It's hard to say if we do break and end up catching the horizontal support from 2002 (which we also temporarily broke in 1998, 17 yrs ago) we will see fast rally. Usually happens when price overextends it's stay above/below a trend line.
Need next support break 120.5