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USD/JPY Breaks Hourly Pennant as Yen Continues to Unwind

Posted on February 24, 2009 at 5:21 in Commentary, Market Analysis by Tim Salem

Greetings !

Our “Turning of the Tide” does, indeed, takes place coming off of our last Post about 10 hours ago!

The Dollar Yen rolls on and breaks the Hourly Pennant north, breaching Major Resistance on it’s way to the 96.00 Handle.

The Yen Crosses are actually “directionally correlated” now with Dollar Yen… as the Yen itself continues to unwind, and brings us Hourly Double-Top formations….and with Yen weakness… these may simply may blow through resembling fractal Bull Flags.

The Yen unwinding from Risk Aversion and “Safe-Haven” Status is significant here… and when we begin to see these subtle changes in long-term correlations…a Paradigm Shift is upon us.

Translation: There is Blood In The Water…     ;-)

Gold simply continues to consolidate… remember… it has to “digest” all of it’s Safe-Haven Nutrients as the Yen flows into it, the Dollar, and literally everything else on the kitchen table! 

Here is our Daily and Hourly View of USD/JPY… Give them a Click, and Post-Time is 10:20 GMT.

 

 

 

 

Observe Price Action here as we are “caught” in this Range… so if your view is Bearish… you may see an opportunity if we get to .9600 to “Fade” the Level.

If you are Bullish… you will wait for the exact “Fade” above and observe the Correcton from there.

With the unwinding of the Yen… there is no need to chase this Trade… or any trade for that matter!

Remember to hold your Patience here, and as I always say…

Price will lead You to where It wants you to be.

 

 

 

Let’s pull our Euro and Gold back into the mix for the next Update, in keeping with our “Week-Long Theme” here… considering the Euro ignored atrocious IFO Data Points and continued its’ Appreciation.

 

:-)

 

 

 

Tags: Bears, Bulls, chart patterns, correlation, decouple, euro, flag, gold, pennant, unwind, Yen

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