Dollar-yen gets a nosebleed in the clouds
- JPY fails inside the Ichimoku test once more
- For USDJPY, downside is the ultimate direction
- We should soon retest 99.00-50 (and 95.00 after that)
We have been selling off since February. We know that all that time the market has been waiting for a response from the Bank of Japan, and this morning was their latest attempt at said response, and we FAILED in the Cloud AGAIN.
This says that downside is still "the go" for this pair. We should soon retest 99.00-50, and if this area breaks we can think about 95.00 as the next significant target.
NB: One caveat to all of this, of course, is the Fed meeting tonight. All of the above is related to the "JPY" side of this pair. What happens later today is very much about the "USD" element!
Chart 1: Daily Ichimoku chart showing continued failures on rallies to the "Cloud".
Chart 2: The Weekly Cloud chart shows a good hold of the top of the Cloud back in mid 2014. Then a solid break in February that was the catalyst for what's been seen since...
Clive Lambert is chief technical analyst at FuturesTechs