Recap Rallied continued to tag Y+2. Turned into spike high and breached Y+1 giving us more downside. Dropped down to below Y-0 and found support. Closed the week above Y+1 and midpoint.
Outlook The pullback I was looking for happened right on schedule. Relatively the week range is already greater than the one before so it is a significant pullback. On weekly basis, there is no damage to the up trend itself.
As long as Y-0 / B-0 can act as support zone, retest of B+1 and higher is likely. The swings can get very wild from this point because intervention by Japanese government can happen anytime but their effort to slow down the weakening of yen will likely fail.
Lawrence's Comment
Recap
Moved higher as expected. Target of above Y+2 reached and a rounding top was formed. End of week selloff brought ninja back down. Closed the week above Y+1 and ...
USDJPY Dec 09 to Dec 13 Outlook
Lawrence’s Comment
Rallied continued to tag Y+2. Turned into spike high and breached Y+1 giving us more downside. Dropped down to below Y-0 and found support. Closed the week above Y+1 and midpoint.
Outlook
The pullback I was looking for happened right on schedule. Relatively the week range is already greater than the one before so it is a significant pullback. On weekly basis, there is no damage to the up trend itself.
As long as Y-0 / B-0 can act as support zone, retest of B+1 and higher is likely. The swings can get very wild from this point because intervention by Japanese government can happen anytime but their effort to slow down the weakening of yen will likely fail.
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