YEN vs USD …certainly smells like a multi year triangle …

well, when we last posted, we were looking for the YEN to complete a multi year triangle. holy smokes, it certainly dumped today. the key here, as you will see below, is that it did ‘exactly’ what its supposed to do … in a triangle you look for price correlations that are .618 the preceding leg. in this case, we would look for the ‘d-e’ leg to be .618 (or .68179 (musical note)) of ‘b-c’. Guess what – that is EXACTLY what it did today. as you can see, we hit that relationship and the USD exploded against the YEN. So, IF (and this is a big if) our triangle thesis is the correct the YEN is about to get smoked. Now, mind you – the currency markets are HUGE. something around EVERY equity, commodity, futures and bond markets would have to run every day for 90 days to equal ONE day of liquidity in the FX markets. READ THAT AGAIN. The yards (billions and perhaps of trillions) of moves that were occurring was MASSIVE. Yet, the .618 (.68179) relationship held. so, because of that monstrous thrust into the ‘e’ we need to wait for a retest or a BUY pattern to emerge …unreal folks.

Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets.

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