Inside technicals and chart patterns by 
I want to do some continuing analysis and follow up to my post of the 22nd about the swing on the 240 minute USD/JPY.
The trade did confirm as prices bounced (corrected) into the bottom line of my Wave…the 34ema low. You can see that post here.
So the what’s happened since then?
The swing is still but…the market cycle has shifted to more of a sideways market cycle. So here’s what to consider:
Is the trend still down? NO
Is the reason for the swing short (Wave resistance) still in place? YES
Is there another trade set up to begin considering? YES, a MOMO
The Dow is up 195 points as the bonds are getting ready to close but the USD/JPY did not trend up higher indicating that there is much risk apprtite. In fact gold did not sell off much indiacting risk appetite and the U.S. Dollar has been holding onto 80.00 support. If I were a betting kinda gal (I’m not!) I would say that this rally is not supported by the cast of characters I would want to see if the rally were going to hold onto its gains tomorrow.
Good new for the Dow has been sending the dollar lower and so with that logic today’s better-than-expected Consumer Confidence number would have sent the dollar through 80.00?
So I am still happy with the swing since even with an up day on the Dow, resistance is holding in the dollar-yen. BUT I am keeping my eye on a potential momo (breaktout/breakdown) set up all the same.