Although it may seem like a foregone conclusion these days that Tokyo’s Nikkei Index is imminently headed much higher to meet Central Banker’s price targets, while the Japanese Yen is destined to continue on lower, looking at the daily chartsĀ of the Aussie/Yen, Euro/Yen, and the U.S. Dollar/Yen crosses seems to indicate a reversion trade may be more probable.
Both the Euro, Aussie, and Dollar seem to be struggling a bit of late versus the Yen, while the Nikkei is further stretching out an already abnormal angle of ascent higher on longer-term timeframes. The bearish patterns on the currency crosses have yet to confirm, but any strength by the Yen and weakness in the Nikkei puts pressure on the Aussie, Euro, and Dollar to the point where late-to-the-party Nikkei bulls and Yen bears are likely going to get set straight for a few weeks, at least.
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Nikkei had a bad night. Gap and crap.
Yen forecasts…
http://i.imgur.com/m8rxtFn.png
Earnings revisions…
http://i.imgur.com/nehsfNL.png