Thursday, 23 February 2012

Japanese currency to loose significantly

Is USD /JPY on a trend reversal?
This question arises seeing the movement of the currency in recent weeks.
Monthly chart
As we see on the monthly chart, the currency, has been in a constant selling mode after making a high of 124.16 in the month of June 2007.
The current momentum suggest that the currency has bottomed - out at 75.5 on monthly basis.
The larger degree momentum suggest a continuation of the on going rally of $ / JPY.

weekly chart

As we see on the weekly chart above, it has given the break -out above higher side of the bollinger band. That suggests much stronger movements ahead.

The higher StockRSI, positive break - out on MACD and other technical indicators suggesting strong buying ahead, makes me believe that the currency will touch 93.9 within a span of 6 -8 months.
Only a break below 75.5 can be considered as a fall of the structure.



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