Sleeping Dragon about to Awaken?
Let’s face it, trading the yen pairs has not been the easiest undertaking these past couple of years, and this Weekly GBBJPY chart summarizes why. The once volatile “dragon”, as this pair was called, can barely muster a warm cough lately. Laying there on the chart it looks like it’s literally had the life wrung out of it.
Taking the frustration of so many bloggers and online commentators over QE II as a contrarian gauge, along with the sharp drop in readership for so many financial publications and websites that cover the currency markets, a case may just be made that we could be close to a turning point for many currencies, including GBPJPY.
Regardless, this weekly chart of GBPJPY is worth 1,000 words.
Jay Norris is the Chief Market Strategist at Clovernest Financial Group and the author of Mastering the Currency Market, McGraw-Hill, 2009.
DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and is not suitable for every investor. Any charts shown here represent market conditions at a particular point in time. Such conditions may not be replicated in the future. Past performance is not indicative of future results.