Quote:
Originally Posted by John Kicklighter
I don't see the triangle formation you are talking about on the weekly chart. Have a picture?
I'm waiting for a breakout too. Direction is difficult to discern; but it won't be so easy to pick back up with the long-term bear trend. At this point, both currencies have their safe haven aspects (I would argue the US is the more appealing harbor for capital) and carry unwinding is running thin. Fundamentally, the US economy is in a stronger position - the government has acted more aggressively at correcting its troubles and domestic sources of growth are far more influential than they are in Japan.
In reality, I wouldn't be surprised to see a break below 93.00/2.50 again (it is a very prominent head-and-shoulders formation); but the decline will be short-lived. Right now, I'm waiting for a short-term move should we see a break above 97. The real action begins with a push above 101.50.
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John K., I'm attaching the photo I'm looking at. Maybe you can tell me if I'm interpreting it wrong or something. Thanks John.
