We haven’t updated the Currency Rotator model for a while but the Yen has reached a critical upper resistance level and may offer some shorting opportunities if that resistance proves insurmountable.
Tuesday’s intraday high of 118.52 was a new all time high for FXY, a close follow up of 8/24′s high of 118.45. The mid panel technicals have effectively flattened since mid-July, providing little guidance for any forthcoming drama. A tactical approach to the current Yen momentum using an adaptive breakout pattern from the up sloping channel is my current trade . . this is akin to a straddle in motion and the position parameters (stops and limits) have to be adjusted each day to maintain an equilibrium of risk. More on this tactic later if anyone’s interested.
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