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- VIDEO – Targets for GBP, USDJPY and EURO - October 5, 2016
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- How to Trade the Dollar into the Presidential Debate - September 26, 2016
- Here’s How to Trade the Sept ECB Rate Decision - September 7, 2016
- Bank of Canada September Preview - September 6, 2016
- Will August Payrolls Disappoint the Dollar? - September 1, 2016
- Where is the Dollar Headed this Week? - August 29, 2016
- Will Aug NFPs Help or Hurt USD/JPY? - August 4, 2016
Last week, I was all over the weekly cloud cover break in USD/JPY (see chart one), talking about how important it is and why further gains are likely. It is a new month now and we have another important technical break on the monthly chart (see chart 2). USD/JPY closed above its 20-month SMA. This confirms the degree of bullish sentiment in the market right now and reinforces my view that USD/JPY is headed higher for 85.
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 – ????