Japanese Yen Review FXY JPY/USD

Those that view the message of the market on daily basis are likely confused by trading noise. While trading noise contributes to the long-term trends, it does not define them. Human behavior tries to explain trading noise as a meaningful trend. This confuses the majority which, in turn, contributes to their role as bagholders of trend transitions.

The Japanese yen has been a Grade A impulse in triple upside alignment since the beginning of March (see PREV Matrix). Grade A alignments, setups driven by primary trend breakouts (BO), are early cycle signals that often produce the best profits.

A word of caution. While the yen is green highlighted to mark Grade A alignments, it’s red and followed by the words EXP. The computer adds these markings because the Yen’s daily trend is extended (TIME) and under high expansion. BuST at 3.21, a reading that exceed the warning cutoff 2.00, defines an extended impulse. Extended impulses often fall of alignment unexpectedly; an outcome which CAN be accompanied by a short-term decline. High expansion also suggests exhaustion of price and volume over the short-term.

The yen’s weekly and monthly reversals define a market that’s jumped creek from 85-90. We know this as long as price remains above weekly and monthly reverse under the below columns.

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