Japanese Yen 6J - USDJPY Long Term - Monthly
This is a very interesting chart.
Normally I don't look at monthly charts - but this one is special.
Lots of lines on the chart - but take a moment and I'll go through it with you.
Firstly I realize that most people trade currencies do so with CFDs - which is fine but the banks/funds that push the market around look at Futures Market.
The red dotted line is a broken trendline ( I will add these trendlines are drawn by an algo - its what the algos see and interact with - if interested DM and tell you how to get them.
Back in July we were positively divergent on RSI as (green dotted line) we were at the bottom of a known support level and the market was trying to go up. (Blue arrow points to positive divergence on RSI.)
This was broken - with everybody long they jammed it down. Ouch - Its what they do.
This created a new triangle - much larger, but currently untested - bottom blue dotted line.
In the middle of that is an orange angle bisector (part of the algo) - and its exactly where prices stopped - exactly creating a 2.0 Fib Retracement. Sounds like something a computer program would do right?
This reaction is an acknowledgement that we are now working with these larger trendlines -this means that eventually the Yen will be going down a lot more. However this could be months or even years away.
This happened this week. Could we put in a double bottom? maybe but I wouldn't count on it.
So now what? Well we hit a Naked Point of Control from last week today. We have back backed off a little - there are numerous untouched Naked Points of Control above and maybe we'll return to them - of course its hard to know.
The median price for the year and Naked Point of Control (confluence) is at 0.08970 - I would think we make it back to that - and really a rejection there would make sense.
Good luck
GLOBALPRIME:USDJPY
