Dollar/yen has dropped under the 76.5 level so currency intervention is expected. The red line at 76.5 has held for over three months--until the last few days. The yellow lines show the falling wedge and the postitive divergence across all indicators indicating that a bounce is coming. Thus, the dollar/yen upside would benefit with a double boost of currency intervention and positive divergence. Note the white box that shows the August intervention, large spike up to 79, then failure. The dollar/yen has paid some dues, it is time for it to recover.
Projection is limited downside with the main price move sideways to sideways up moving forward. Intervention will create a lage quick spike upwards. The dollar/yen moving up should provide buoyancy to the U.S. dollar, thus, dollar up=equities down. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or from any of the associated links to this site. Consult your financial advisor before making any investment decision.
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.