Blaming the YEN

A lot that has happened on the forex market has been blamed on Greece, European Union economic disorder, and relatively better situation on the American debt situation. Little attention has been given all this while to the YEN.The JPY USD is emerging out of historical oversold market suggests a move up back to 100. Multi year momentums are slow to turn, but have higher workability. This anticipated weakness on Yen could get noticed shortly as the currency heads to the psychological level. Then markets will have something else also to blame for the strengthening dollar. Our proprietary performance cycles also validate our reversal view on YEN (Slide 2).
The latest WAVES.FOREX carries anticipated and happened case on JPYUSD. We were consistently positive on the pair from 90 levels starting the 14 Jan update. The latest report also carries quarterly momentum cycles on Dollar Index. Even if intermediate momentum showcases a pause or a strength, the larger multi year cycles continue to point lower. Despite the minor degree morning reversal star and consistent momentum non confirmation, EURUSD has failed to generate a serious bounce. Inability to move up above 1.38 confirms preferred multi month negativity. The Elliott structure also suggests that the ongoing fifth (slide 5) is disproportionately small and hence extending.
Emerging market pairs like Indian Rupee might be witnessing some strength, but we still maintain the ongoing formation as corrective bottoming till 44 rather than any perceived secular strength. Other emerging pairs like Romanian Leu also hit intermediate supports against Euro last week. Equity strength might also have kept the emerging pairs strong. This aspect should also weaken ahead.
Regarding the commodity currencies viz. Canadian and Australian dollar, alternate view remains topping and giving a support illusion to dollar. CHFUSD supports a corrective structure ready to resolve higher. Dollar strengthening ahead should generate lot of causal story ideas. Above 1.38 EURUSD we review.
Enjoy the latest WAVES.FOREX



WAVES.FOREX is a perspective product published TUE and THU. The report highlights the top traded FOREX PAIRS (e.g. Euro, Dollar, Yen, Indian Rupee, Romanian Lei, Swiss Franc and Dollar Index) The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools and sentiment indicators. REUTER RICS: EURRON=, RON=, JPY=, INR=, HUF=, HRK=, GBP=, EURCHF=, CHFRON=, CAD=, =USD, EUR=
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