Heed The Yen Warning
When my weekly technical work on USD/JPY exhibits a glaring negative-momentum pergence, it’s worth heeding the warning that usd is nearing upside exhaustion — yen nearing downside exhaustion — after a near 4-year vertical run from 75.50 to 125.85.
All of the action in USD/JPY since its “orthodox high” at 121.85 in Dec. 2014 represents the initial period of topping distribution.
To complete the top formation, USD/JPY must roll over and sustain beneath 116.00, at which point my work will trigger major sell signals — Yen buy signals — that will project to 100.00-95.00 thereafter.
Heavy resistance resides between 122 and 125, which should prove impenetrable prior to the anticipated rollover into a major corrective sell signal.
Weekly USD Vs. JPY