Charts: Why USD/JPY Could Head MUCH Higher

USD/JPY has been on a tear lately but this could be the beginning of an even stronger rally. I don’t use Ichimoku charts at all but this pattern is so significant that I have to mention it. The first chart shows that we are at the cusp of a weekly close above the Ichimoku close which is VERY rare. Over the past 18 years, USD/JPY has CLOSED above its weekly cloud only 4 times (not counting this one) and in 3 out of those 4 instances, a very sharp rally in USD/JPY followed.

1995 break – USD/JPY rose from 97 to a record high above 146
2000 break – USD/JPY rose from 108.50 to a high above 134
2005 break – USD/JPY rose from 108.50 to a high of 124
2009 break – FALSE BREAK
2012 break – ????

8 Comments

  1. Thank You, Kathy, for Your as usual very insightful and interesting point of view! Tonight when I’ve read Your fx360 comment about why euro is going up I was shocked about Your suggestion that we can see eur at 1.45 But looking at todays dynamic of market I can say that You as usual have sense in Your thoughts :) This post is also breaking standards and clearing brains like dose of good coffee :) Your deep knowledge of different statistics and skill to connect facts in chain is really impressive! Go ahead! I’m one of Your thankful reader!

    Reply
  2. Dear Kathy Lien,

    I’m Huong, from Vietnam. I am deeply appreciated your talent on forex trading. So, in your view, which level would the pair USD/JPY reach at , and remain how long.

    I intent to take part in your BKforex Advisor, so would you give me advice to do.
    I’m looking forwards from you.

    Thanks so much,

    Dang Diep Yen Huong

    Reply
  3. Thanks for the insight, my chart doesn’t go back 18 years, so I would have never seen past the false break in 2009. :)

    By the way, the false break on my chart does not actually have a weekly close above the cloud, does it on yours?

    Reply

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