I’m watching the Nikkei ( The Japanese Equities Index ) for “any” sign of reversal considering that it “has” pushed through the overhead downsloping trend line that has been so well-respected in the past.
In fact…..this is more like a “20 year” down trend so….you can understand my current skepticism.
Considering the current “headwinds” I find it very hard to believe that “now is the time” for a massive breakout / reversal in an area of resistance / trend going back some 20 years.
Otherwise, Im looking to see the correlation and movements underway in the precious metals and USD, as well keeping my eye on those longer term U.S Treasury Bonds.
We’re pretty much at a point where a number of these longer term correlations need to either “stay the course” or “make their move” – with “tapering or no tapering” the primary driver.
With Japan pretty much in the driver’s seat “liquidity wise” a keen eye on the Nikkei and its inverse relationship with the Yen will provide the first signs of reversal in risk.
I’ve taken profits on all “short USD” pairs, but will likely set up orders “above or below” current action in several pairs and look to catch further movement with momentum. I’m also still holding a couple small trades ( in the weeds ) long JPY – but have little concern as these will only be added to / kept.
written by F Kong