Well, here it is, an updated U.S Dollar/Japanese Yen cross daily chart. It seemed foolish for me to raise the specter of a rare topping pattern when it was above 100 back in May in this blog post, but now the pattern is becoming more viable by the day, especially given the prior multi-quarter uptrend up to this point.
For a variety of reasons, a strong and strengthening Yen (which is very heavily-shorted and prone to vicious squeezes) is likely to continue to put pressure on global risk appetite.
The Dollar had better find support at current levels, denoted by the purple line below, or we truly have a monster squeeze taking place in the Yen.
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Excellent eye and foresight thus far
When the Yen squeezes, things get scary.
Chess
How do you determine a price target if this pattern is confirmed? Many thanks for your awesome work and foresight.
this is a huge pattern so it is much much lower – bigger the top = bigger the drop, bigger the base/bottom = higher in space