I studied different charts with top-out formations... GBPJPY in 2007, EURUSD in 2008, and rounding tops are easier to short; they happen after a draw down from the real top.
There are some economic numbers coming out for Japan in the next weeks or so; they will clearly paint a bleak picture. And you remember, a slew of bad economic data broke the Eur neck against the USD,when chart-wise the first few cracks occurred. First traders will surely try to re-test .010600 in the JPY, the point it reached in the optimistic first January days.
Obama rallye and treasuries selling should be reflected in the Yen price.
Also, beaten down Yen crosses show bottoming patterns - GBPJPY at and over 130; there is only a problem with the EURJPY cross. It shows hardly any improvements since the Oct 26 and November bottoms, all at 116, despite the EUR advanced a lot. In fact, it returned to 116 few days ago. This is hard to read.
Hint - if the JPY does no longer react to the now and then small correction moves in the EUR then the programs have been changed.
Right now, it is Sunday evening here, the large moves in EUR GBP, and stock indices may be exaggerated. We will see whether that holds in the European session from 3am onwards, or whether fading activities are coming. Ride it as long as the DX is heavy on the ask side.... |
