US Dollar / Japanese Yen 05-24
BIG PICTURE: “The decline from the 2007 high is viewed as a leading diagonal. Leading diagonals are often followed by sharp second wave advances (sometimes as much as 78.6%). The 61.8% and 78.6% levels are 10915 and 11577. Trading above 9500 would put the pair back on track towards those levels. HOWEVER, looking back nearly a decade, there have only been 4 instances of a weekly range as large as last week’s range. In each case, a sharp retracement gave way to yet additional weakness.” Weakness has extended to the 78.6% retracement. I would look higher from here with initial resistance at 9085.
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