Weekly review of USDJPY
In this post I would like to review USDJPY pair.
First let’s look at the USD currency.
First thing, I would like to show you is this weekly weighed average YEN (weekly)
I would say it is too early to say whether that strong YEN sell off last week going to continue
Now let me to add some lines:
If you draw these lines you will get support on daily.
Look at the monthly one more time here.
The above is monthly.
Lets look at the correlation between indices and YEN
As can be seen they are negatively correlated and when one of the moves higher the other moves lower (it is daily). If you want to have this chart on you watchlist, just see the screenshot title and add that into your watchlist by clicking on the “Symbol” and type the formula in there.
The lower the indices go the higher YEN goes. For example see FTSE 100 . It just made all time highs.
So after making all time highs, Indices had a pullback last week and that pullback caused YEN to shoot up
well let me get back to the weighted average
Surely Indices have a lot of upside room as you can see.
If we see indices continuing making higher high then YEN should be a lot cheaper
But if I go to the daily I see that price just bounced off a rising and heading lower. Also see how is going to have another pullback after touching EMAs. This is a signal of stronger YEN in short term!
If we see indices gets to here, then that means YEN going to be a beast for a while.
Next I would like to review JXY . Weekly
Let me zoom in
Highly correlated. If JXY heading lower we shall see YEN falling too. JXY is clearly . I wish we could see a price action for indices too then we were absolutely certain about YEN bearishness. But it is not
But also see formation on JXY . Another formation confirmation for YEN.
If we see a break of the neckline YEN going to be in trouble.