As mentioned in my post below, I view the strength of the Japanese currency as excessive now. I also note that as the USD has been strengthening the Japanese Yen has been strong, being one of the few currencies that has not weakened versus the USD. If the USD were to weaken again for a period would the JPY weaken with it? Take a look at the chart above. JPY has broken out of a daily trend and has the potential to form a double bottom on the break of 94.63. My own studies point to a volatility break out and given my fundamental position I would favour a move higher. You can wait for confirmation of the double bottom or ease your way in before with a stop under 87.11. Either way this one could motor.
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