From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
The turmoil in equity markets has stolen all the attention since last year. But stocks aren’t the only asset class that’s a mess. We’re getting the same kind of mixed signals and sloppy price action from forex markets.
While stocks remain under pressure, currencies have been throwing head fakes and dishing out whipsaws all year long. The AUD/USD broke to fresh nine-month highs just last week only to reverse 200 pips by Friday’s close.
We’re seeing this type of action from currencies all over the world. It’s hard to trust a breakout these days. As frustrating as these failed moves may be, there are some clean chart patterns and favorable setups shaping up right now.
One area where the trend is very clear is the Japanese yen. Just about anything priced in Yen has been rallying recently as the currency continues to collapse.
Today, we’re going to highlight the massive base in the USD/JPY.
Lets’ dive in.