USDJPY Dollar/Yen Daily Chart Continues Teasing 100

The weaker yen during March-May is creating the push higher in U.S. equity and European bond markets.  The thick yellow lines show the sideways range in play through 96-100. A triple top is in place now with multiple tests of 100 continually rejected. Price will either collapse strongly since the psychological 100 cannot be attained, or, the BOJ will install a few additional money printing presses that will provide the push up and over 100 which would likely move to 102 in a heartbeat. Price is using the 34 MA as a support level on the way up so any breach of this moving average is an important development.

The red lines show negative divergence in play with weaker indicators as price keeps bumping its head at the 100 level.  Conversely, the thin blue lines show a potential ascending triangle in play that would create the push through 100 and higher as time moves along. So the chart has something for everyone, bull or bear.  In the context of the huge move in the dollar/yen (drastic yen weakening) over the last half year, driving the NIKK to new 5-year highs, and negative divergence, the dollar/yen bears likely have an advantage moving forward.  Dollar/yen is stuck at 99.10-99.40 for the last few days. Very simply, weaker yen = higher dollar/yen = higher stock market and stronger yen = lower dollar/yen = lower stock market.  Equity market bulls want to see 100+ which will create further upside in the SPX and Dow Industrials. Equity market bears want the dollar/yen to weaken, reflecting a stronger yen, so the stock market can finally begin its much-needed correction to the downside. The current print at this writing is 99.19. 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.