Menu

  • The ‘Incredible Hulk’ chart pattern that’s smashing the dollar

    From marketwatch.com

    The dollar took a sharp turn south against the yen on Thursday, but if you’d been watching a popular technical chart, none of this would have come as much of a surprise. What’s what has been forming for the last two years on that currency cross USDJPY, -1.52% is called the ‘head and shoulders’ pattern, typically viewed as a bearish sign. But in this case the chart pattern is taken on monstrous proportions. Technical wizards have seen this particular pattern coming for a while. Here’s how it is formed: the asset first rises to a peak and then declines, forming the left shoulder, then the price rises above ... (full story)

  • #1
  • Quote
  • Edited 10:55am Apr 7, 2016 10:44am | Edited 10:55am
Well done Marketwatch, as usual you're about 4 months too late with this one! Oh, and in case anyone thinks about jumping in on the short side on the USD/JPY pair, it's right on the weekly 200ema so could easily rally from here back up towards its 100sma at 11,570 currently, as a major Ma coming over the top like this often acts as a magnet for a pullback. If it does continue down, then I've got the weekly 200sma at 10,500, so it could have that in its sights. Just something to consider, and it'll be interesting to see what the weekly candle looks like at the end of tomorrow, or even the daily today.
  • #2
  • Quote
  • Edited 11:09am Apr 7, 2016 10:45am | Edited 11:09am
LOL @ cat great humor but very informative insight aswell
Patience , Discipline, Confidence
  • #3
  • Quote
  • Apr 7, 2016 10:46am Apr 7, 2016 10:46am
I'm ugly but I'm not so dump to belive all this...rubish!
  • #4
  • Quote
  • Apr 7, 2016 11:07am Apr 7, 2016 11:07am
hmmmmmm
  • #5
  • Quote
  • Apr 7, 2016 12:35pm Apr 7, 2016 12:35pm
Whenever news sites say down it means going up.
When the going gets tough , the tough get going
  • #6
  • Quote
  • Apr 7, 2016 1:04pm Apr 7, 2016 1:04pm
Most technical gurus saw the H&S some months ago and began offering advice to short USD/JPY--and most saw a bottom of around 105.

However, Japan monitors and interferes with their currency more than any other nations except China. They have to export to survive and their government/bank/ business alliance (called Japan Inc. )is virtually in synch all the time.

They are making daily signals with talks from bankers and government officials that they can't have a strong yen surge continuing without serious economic problems. But do they have any tools left to stop the yen strengthening? I don't think Abe or Japan Inc. has much left in the toolbox. Abenomics hasn't proved to be a solution.

They may have to depend on whenever the Big Banks decide they have corrected the yen enough before Japan reaches catastrophic financial/economic problems because of the strong yen.

The technical bottom of 105 is in sight, but if the BBs don't show mercy, then Japan's goose is cooked.
  • #7
  • Quote
  • Apr 7, 2016 2:27pm Apr 7, 2016 2:27pm
Quoting cat
Well done Marketwatch, as usual you're about 4 months too late with this one! Oh, and in case anyone thinks about jumping in on the short side on the USD/JPY pair, it's right on the weekly 200ema so could easily rally from here back up towards its 100sma at 11,570 currently, as a major Ma coming over the top like this often acts as a magnet for a pullback. If it does continue down, then I've got the weekly 200sma at 10,500, so it could have that in its sights. Just something to consider, and it'll be interesting to see what the weekly candle looks...
Well said.
  • #8
  • Quote
  • Apr 7, 2016 3:47pm Apr 7, 2016 3:47pm
  •  Trader#76CF
  • | Status: Unregistered Trader
Already been in and out with a nice profit. Don't like hanging with the yen pairs for too long with the BOJ in there messing around all the time.
  • #9
  • Quote
  • Apr 8, 2016 12:38am Apr 8, 2016 12:38am
  •  Trader#7500
  • | Status: Unregistered Trader
Rolex reference?
  • New Comment
  •  Trader#CD19
  • | Status: Unregistered Trader
Create Account
  • Story Stats
  • Posted: Apr 7, 2016 10:34am
  • Submitted by:
     Newsstand
    Category: Technical Analysis
    Comments: 9  /  Views: 4,498