Today's weakness in the USD (weakness in YEN), can be viewed as having violated a support line that originated at the Sept, 2012, secondary low at 77.13, and which cuts across the price axis today in the vicinity of 120.50.
Inability of USD/YEN to claw its way back above 120.50 increases the likelihood of downside continuation that challenges the prior pullback lows at 118.05/10, and more importantly, at the Aug, 2015, spike low of 116.15, which will complete a 12-13 month Top Formation in the aftermath of a four-year bull run.
Today's weakness is potentially, extremely significant to the larger uptrend of USD/YEN, and likely will have major implications for other global financial markets moving forward.
Mike Paulenoff is author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international markets, plus key ETF component stocks in sectors like technology, mining, and banking.
