Bull market in USDJPY has begun

Charts point to a target of 94.00-plus

The $USDJPY is forming a possible bottom of major significance. The weekly graph below shows that the market is rounding up to a 2+ year H&S bottom. A close above 84.50 is required to complete this pattern.

The right shoulder of the weekly H&S pattern is itself a H&S pattern on the daily graph (albeit awkward). This pattern could be completed by today’s strong advance.

The Yen has a tendency to really rip when a trend begins. While the market may appear overbought with the advances of today (if it holds) and yesterday, I believe being long USDJPY has a very measurable risk to below Wednesday’s low.

Markets: $USDJPY

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