Translate

Wednesday, November 23, 2011

USD/JPY - Major bottom in place?

The price-action of the last couple of week, could be consistent with a large long term bottom being in place. After the intervention of BOJ, which took USD/JPY from 75.55 to 79.51 we have seen a drift lower, but not in any convincing way. That could be a warning of a major bottom being in place at 75.55. If I was BOJ, I would get out the dry gunpowder and start shooting, because a rally above 79.51 could give the USD a massive lift against the JPY and ease the pressure on the Japanese exporters.
If we get a break above 79.51 and more importantly 80.24 the way higher has been paved for a rally towards 115 area over the coming months.
However the battle is not won yet, only a confirmed break above 79.51 will do the trick.

No comments:

Post a Comment