Turn Around for USDJPY?
With divergence between the Weekly and Daily trends on so many of the currency pairs, it’s been a good couple of weeks to polish up on the old counter-trend trading skills. Never a business to get too comfortable going in just one direction, I”m wondering if today’s hammer in USDJPY isn’t a harbinger of a market turn, and a return to trending price action for this pair, and the other former carry pairs, EURJPY and GBPJPY?
While the current Daily trends are down for all these pairs, the intermediate-term trends are still in limbo. We are at a cross roads for sure with leading indicators having already flashed green on the Monthly chart at the end of last month for USDJPY, and about to go green for EURJPY at the end of this month. A strong move up from here could shift the Daily trends in-line with the Weekly and Monthly trends which would be exactly what Central Bankers around the world are hoping for.
It would also likely mean a break-out to the up-side for U.S. Stock Indices, which would in-turn give private sector bankers a little more breathing room.
It’s all speculation of course, which is what we do.
Jay Norris
Chart Updated 24 hours later:
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