This text is from blog famous currency strategist Joel Kruger .
TUESDAY IS ALL ABOUT THE YEN – For today, I am only focused on USD/JPY and what could be a major breakdown in this pair. Though the medium and longer term outlook is looking highly constructive right now, short-term studies continue to beg for a much needed, healthy corrective pullback. In recent days we have seen some consolidation with any dips still very well supported. However, the resulting price action has produced a potentially very bearish topping pattern in the form of a head-and-shoulders. Monday’s topside failure ahead of the current high near 94.50, followed by Tuesday’s early break back below Monday’s low, provides an added layer of justification for the bearish case.
See technical analysis video which describe why is good time to sell Yen :
COMPELLING RISK/REWARD – The market could now be on its way back towards critical support at the neckline of the formation which comes in at 91.95. If we do see a break and close below 91.95, this would open the door for an accelerated decline towards a measured move objective in the 89.50 area. While the short trade is rather risky, aggressive players may want to consider selling at current levels around 93.65 in anticipation of the neckline break and move towards 89.50. The risk reward is highly compelling and could prove to be an excellent trade well worth the shot. If you do take the trade, my recommendation would be to only exit on a daily close above 95.00.
