 | |  | | KeymanFX-启明外汇:首席分析师观点
My work with cycles during the past 25 years has allowed me to identify significant turning points in the market. This doesn't always work, but these tend to be times where there is an increased likelihood of a reversal. This is one of those times in USD/JPY. The medium term cycles are telling us that the dollar will peak here, and the second most likely time for a top is late next week ahead of the Emperor's Birthday and Christmas holidays. The cycles argue the yen crosses are forming a peak as well, but this will probably be only a minor one. They will decline for a few days and possibly longer. The yen and euro are strongly correlated, and yet the cycles call for them to trade in opposite directions for a bit. The euro should decline during the next two days, while USD/JPY should also fall into the end of the week. There is a good chance dollar will make its top here and decline during the next few days, resuming its major downtrend.
The shorter cycles argue that Thursday will be a down day for dollar/yen and the support at 117.25 should break. This will confirm that it will fall to 116.40 by Friday, and if it proves that weak the outlook will turn very negative. It has then begun its move lower into the middle of January, and our target for this downmove remains the 114.00 area. If the dollar closes above even the close resistance at 117.65 then my view is wrong. This means the dollar will continue higher into late next week, reaching 118.40 before peaking. We would now bet on the yen - let's see if it works. |  |  |  |  |
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