Now for the risky swap. We are at levels that the currency should want to keep as resistance. That does not mean that it will though. If japan holds fast at negative interest rates it will continue past it until something changes to help the currency out. this is purely speculation on what would be a good resistance level for the usd/jpy currency pair for the next year or so. The Nikkei is at a good level for a drop also. Near the high in the 80's that is. The all time high for the index. Once again this does not mean it will keep this area at resistance, but it should stall atleast. If it does retrace to build a base here before continuing past this point that would be good for the currency, as selling stock and acquiring cash is always good for demand in a certain currency. once again this play is risky and the confidence level of it working out is low. Just looks like it is worth it to mention it and keep an eye on. It looks like I forgot to draw the pink horizontal line for a potential stop in the dip of the currency pair, or atleast a stall in the fall. About 115 would be where it would be on this chart though.
Comment:
Nice double top. We will see how far it goes though.