Is USD /JPY on a trend reversal?
This question arises seeing the movement of the currency in recent weeks.
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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