I thought it worthwhile to have a close look at the weekly USD/JPY chart today as it certainly provides some food for thought. I have highlighted with a vertical white line what happened last time the various technical studies on the weekly ALL turned down from overbought levels and it lead to a 20 big figure fall! Now while i am not suggesting we will see 20 big figures we are probably at least coming back to 94.00 at some stage.
The thing with the weekly charts is that they are like a big oil tanker, they take a lot of effort to turn around and once they get going they don’t exactly stop on a dime either.
As for Sean’s trade of the day, i completely agree with him but am inclined to be a little more aggressive and look to sell the USD/JPY at 100.80 as well as selling the break below 99.60. I believe that we have seen the high for this run up at 101.54 and its time to head lower, give or take a bounce or two towards 101.00.
