Are You Still Trying to Say Jesus Christ Can’t Hit a Curveball?

Let’s go back to those “voodoo,” rare technical patterns which, when they actually hit, can hit big. Think of them as the Jobu theory.

It seemed foolish for me to raise the specter of a rare topping pattern when the U.S. Dollar/Japanese Yen currency cross was above 100 back in May in this blog post, but the pattern continues to be in play, especially with the resurgent strength in the Yen of late.

For a variety of reasons, a strong and strengthening Yen (which is very heavily-shorted and prone to vicious squeezes) is likely to put pressure on global risk appetite.

The Dollar had better find support at current levels, not much lower than 97, denoted by the purple line below, or I think we see a monster squeeze taking place in the Yen, with all that entails for global risk.

At a minimum, even if you do not think the pattern is a match the cross has been a sloppy one since April after a prior monster rally.

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