Loading ...USD/JPY Rising Wedge *Update*
Yesterday I posted the 4hr chart of the USD/JPY showing a rising wedge that broke to the downside. Upon further review considering today’s price action, I decided earlier today that the bottom rail needed adjusting. Nevertheless, a rising wedge is a rising wedge.
If USD/JPY continues upward, I’m thinking the maximum price this rising wedge could reach is around 113.30, give or take 10 bps. At which point the wedge should break to the downside. Ultimately I think we’d see the dollar/yen fall back to 110.00 at a minimum, which would push gold $20-30 higher, and provide a solid swing trade on miners, if nothing else. The next day or so is the gentlemen’s re-entry for a long gold/miner bounce, IMO.
I know it may be hard to eyeball on the chart, but the concurring date/time for when we could reach the top of that rising wedge would be 9/28 or 9/29, and most likely we’d see the breakdown play out largely next week.
Good chart, thanks. Carry trade should start to unwind soon.
Buy them all $1290 $1280 $1260 $1240 or $1200 if it gets there. I think most people are scratching there heads at the moment. But I still like the Yuan USD manipulation theory that China devalues the Yuan when they want to sell there crap into the states then inflate the Yuan when they want too purchase commodities. Christmas is just around the corner and China has a whole lot of crap they want too sell at Walmart. I think it explains the YCL of commodities at the end of the year then the Yuan rises as they need too restock on commodities. They learned it from the Big Banks beautiful…..
Good spot.