Friday, March 04, 2011

Keep An Eye On The Japanese Yen

Above is a daily chart of the Dollar/Yen over the past year and as you can see this currency  has been consolidating for about 4 months. You'll notice that the Yen has formed a symmetrical triangle pattern which is one of my favorite trading patterns because the moves are usually swift and quite profitable.  I'd prefer to trade the breakout of this pattern to the downside being that the major trend is down. A move below this month's low may be the trigger for the next leg down in the dollar/yen.  As always, lets see what happens.


Anonymous said...


How would you play this? Would you do it through an ETF (seems like FXY barely trades and has very little volatility)? If so, which one? Are you also looking to this as a tell for overall stock market direction? Sorry for the all the questions. I appreciate any and all feedback!

Anonymous said...

We saw what happened...


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