Sunday, July 23, 2017

USDJPY Dollar/Yen Daily Chart; Death Cross; Downward Sloping Channel

Last week after King Draghi sent the euro to the stratosphere above 1.16, the US dollar index drops like a rock to 93-95. The US dollar index is lower so the yen is higher and the dollar/yen currency pair moves lower. As the pair moves lower the 50-day MA stabs down through the 200-day MA creating a death cross (black circle).

The death cross forecasts lower numbers ahead as long as the death cross remains in play, however, right when the negative cross typically occurs, now, there is usually a counter trend bounce that occurs for price. The stochastics are agreeable to a bounce but the other indicators are weak and bleak wanting to see lower numbers for the USDJPY pair going forward after any bounce may occur in this daily time frame.

The purple downward-sloping purple channel is in play. Ditto the blue channel. Governor Kuroda pours a shot of sake into his cafe latte to ease the pain. Japan needs a weaker yen (higher dollar/yen currency pair) so its exporters and manufacturers can outperform and help the economy recover. A stronger yen will hurt Japan just as the stronger euro hurts Europe. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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