Building The Case For The BIG Yen Reversal?? (Coming Soon)
Unless you've been living under a rock the last few years you have seen the massive depreciation in the Japanese Yen against every other major currency pair in this post I'm going to share with you why I think the BIG reversal in fast approaching.
This post is much like the post I did on the CHF at the beginning of the Year where I correctly predicted a major correction (see related post) where every single CHF pair had reached key higher timeframe support levels and buy zones at the same time.
A similar story is occurring in the major JPY cross pairs also at the same time we have the BOJ finally ending negative rates and hinting of more possible rate hikes this Year whilst other central banks are talking about cutting rates with the SNB leading the race last week.
First off is the USDJPY you can see on the Monthly chart where 152 is acting as a key resistance level that goes all the way back to 1990 this is a key technical level.
Next is the GBPJPY I did a post on this last week about the likelihood of a sell off from the 193 Monthly resistance level (see image below)
Then we have the AUDJPY which the 100 mark last week which is approaching a key resistance zone 101 above this zone has seen massive corrections in the past (see image below)
Next is the NZDJPY which I done a post on several months ago showing you the importance of the 93 resistance and the likelihood of a correction from this level which the chart below shows we got a rally to here followed by a sell off.
Next is the EURJPY which last week got the break above 165 before selling off shortly back below last years high of 164 the chart below shows 2 key resistance areas here @164 and @167 where we have seen massive sell offs before.
As you can see all the major pairs are at or approaching key Monthly resistance levels and sell zones where there have been huge corrections from in the past.
To me this is a massive correlation across all the major pairs and very much indicating that a change in the tide is coming very soon. This very much is mimicking exactly what happened with the CHF pairs this year.
Will the same happen with the JPY pairs only time will tell but it's looking very good there are several ways to trade this build into sell positions across all pairs off course this can increase your risk exposure and off course swap fees or you can trade yen futures.
Off course the timing of this reversal is the hard part as it's the Monthly charts could take several months to play out or more. And then there is the possibility that I am wrong and the YEN weakens more and all these major levels get blown out at the same time :)
Let me know what you think in the comments :)
This post is much like the post I did on the CHF at the beginning of the Year where I correctly predicted a major correction (see related post) where every single CHF pair had reached key higher timeframe support levels and buy zones at the same time.
A similar story is occurring in the major JPY cross pairs also at the same time we have the BOJ finally ending negative rates and hinting of more possible rate hikes this Year whilst other central banks are talking about cutting rates with the SNB leading the race last week.
First off is the USDJPY you can see on the Monthly chart where 152 is acting as a key resistance level that goes all the way back to 1990 this is a key technical level.
Next is the GBPJPY I did a post on this last week about the likelihood of a sell off from the 193 Monthly resistance level (see image below)
Then we have the AUDJPY which the 100 mark last week which is approaching a key resistance zone 101 above this zone has seen massive corrections in the past (see image below)
Next is the NZDJPY which I done a post on several months ago showing you the importance of the 93 resistance and the likelihood of a correction from this level which the chart below shows we got a rally to here followed by a sell off.
Next is the EURJPY which last week got the break above 165 before selling off shortly back below last years high of 164 the chart below shows 2 key resistance areas here @164 and @167 where we have seen massive sell offs before.
As you can see all the major pairs are at or approaching key Monthly resistance levels and sell zones where there have been huge corrections from in the past.
To me this is a massive correlation across all the major pairs and very much indicating that a change in the tide is coming very soon. This very much is mimicking exactly what happened with the CHF pairs this year.
Will the same happen with the JPY pairs only time will tell but it's looking very good there are several ways to trade this build into sell positions across all pairs off course this can increase your risk exposure and off course swap fees or you can trade yen futures.
Off course the timing of this reversal is the hard part as it's the Monthly charts could take several months to play out or more. And then there is the possibility that I am wrong and the YEN weakens more and all these major levels get blown out at the same time :)
Let me know what you think in the comments :)
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