USDJPY Dollar/Yen Daily Charts Inverted H&S and C&H Patterns

Lots of talk today about the BOJ easing next week so watch out Sunday night for any potential moves. The dollar/yen is moving up on the news, a weaker yen will send the dollar/yen higher. A higher dollar, as we have seen the last few days, sends the dollar/yen higher as well.  The long multi-year falling wedge bottomed at the start of the year. The falling wedge, with the positive divergence, launched the dollar/yen off the bottom. We forecasted this to occur with the dollar/yen chart back in February.  The dollar/yen is basing now and ready to move higher.

After long down moves, Keystone looks for inverted H&S and/or C&H patterns to further verify the bottom. The dollar/yen shows both in play. The near term chart, courtesy of YHOO charts, is annotated to show the red inverted H&S and green C&H in greater detail.  Both patterns show 76 as the base (the head for the inverted H&S and the bottom of the cup for the C&H), with the breakout line (neckline for the inverted H&S) at 84 for both patterns. Both patterns target 92 should the dollar/yen break thru 84. Interestingly, if the dollar continues its rise, this will greatly aid the move to 84 and higher. A rising dollar will cause equities to sell off.  Projection for the dollar/yen is a test and eventually break thru at the 84 level sending the dollar/yen to 92 during the weeks and months ahead. 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.