If The Shoe FITZ

Chart Of The Day: It's A Struggle

That is not some smart title- It is literally a struggle to find a new interesting chart today.

 
However, one chart that looks very interesting (to some LOL) is JPYKRW
 
Last week this posted a clear bullish outside week off a double bottom and the rally has continued this week.
 
Good trend line and 55-week MA resistance exists at 8.91-8.94 with further horizontal and downward sloping channel resistance at 9.265 to 9.36.
 
A weekly close over 9.2650 would complete a double bottom that would target 10 with interim resistance at the 200-week MA at 9.78
 
in addition, a monthly close above 8.9079 would also give us a bullish outside month at the low of the 4-year + downtrend. This is not something that has happened in this whole downtrend and the last bullish outside month was back in Jan 2020
 
All of this at least suggests that we could be seeing a major medium term trend reversal forming- something that would be hard to imagine unless we are also seeing a major turn in USDJPY. That would also be hard to imagine unless US yields and US Japan spreads are heading materially lower (which is my bias)
 
In this respect it is worth keeping a close eye on whether USDJPY closes the month below 154.55 as that would be a bearish outside month at the trend high. This has also not happened in the whole rally up from Jan 2021 (which barely missed a bullish outside month to start the trend)
 
 
 
 
 

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