Category Archives: FOREX

Yearning for Yen’s Ya-Ya

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I have been waiting (impatiently, which is kind of how I roll) for the USD/JPY to break. I think the time is here. I would normally post this in Slope+, since it’s a really good idea, but I’ve been all thumbs lately with my FOREX trades, so I figured I’d risk it on the unwashed masses instead. In any event, I am (once again) long the Yen; if we can get a good break of the pattern below, it’s party time, and my Slope+ forex curse will be over.

0130-FXY

The Euroblown

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I was intrigued to look at this Slope post from nearly five years ago which stated:

Let’s notice that a downside violation of 1.2330 completes a massive 4-year top pattern that could “unhinge” the EUR altogether and send it into a vertical tailspin towards 1.1640/50 on the way to parity with the USD — a move that certainly will get the attention of the ECB and the Fed, which vowed to defend the integrity of the EC last weekend.

It may have seemed nuts at the time, but with this enormous symmetric triangle that has been broken (and the Euro plunging anew this morning), we could well be at parity this year!

0123-euro

Possible Bounce in Store for Euro

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Further to my recent posts here and here, the EUR/USD Forex pair has reached a potential (double Fibonacci) support level between 1.1205 and 1.13, as shown on the following Weekly chart. A possible bounce is in store for the Euro.

Failure to begin stabilizing at this level and reclaim the major resistance level between 1.19 and 1.2125 (seen pre- and post-2007/08 financial crisis) could send the Euro plunging down to the 2000 lows of 0.8227. I can’t imgine that’s what Mr. Draghi has in mind with his ECB QE policy announcment earlier today…although stranger things have happened.