Wednesday, June 13, 2007

Japanese Yen Making 4 Year Lows

The Japanese yen was lower today making not only a new year low but a four year low. If you look at the above weekly chart of the yen, you will see it is breaking down out of a pattern which is known as a descending triangle. This price formation is very bearish and suggests much lower prices are in the future for this currency.


Yaser Anwar said...


Nice chart. The carry will keep the Yen in a downward trend, but I think short-term we may see a bounce. The recent news out of JPY has been strong, and JGB yields have inched upwards of we might see a bounce to 84-85 level.

Let's see, vital data in US today/tomorrow. Y

sward said...


Many thanks for your interesting blog.

Have you found triangle break-outs to be reliable signals in forex markets? Could the formation be labelled a falling wedge instead?

Thanks again,


Kevin said...

Hi Simon,

Triangle formations are usually reliable in most markets, but nothing is perfect.

I wouldn't call this a falling wedge, I think it's a descending triangle because of the lower highs and the horizontal base of support that was just broken.