USDJPY – Beware Of Sweeping Generalizations

Update 10/04/2013 -> this is purely a technical look based on simple candle patterns, levels and trendlines.. so obviously if some huge govt body makes big news this can get skewed..

as of now.. this week looks BEAR.. (candle closes Sunday night) ..and I'd expect the oversold on DAILY to test up into this weekly BEAR and fail..



Friday Keith McCullough mentioned the USDJPY and Bernanke destroying the USD ..ect ect ect .. I’d like to offer a different POV .. positioning .. if you believe like I do that the market is always looking for balance..and the nature of extreme leverage in the market ..makes for extreme imbalance..this can also affect our POV of value and the nature of what is meaningful in price discovery. I’d put forth that price discovery now is alot like chasing your shadow.. your shadow moves and seems to describe you..but has little real relationship to your state of being.

… a couple charts

1) 2005 low USDJPY with 2007 Top .. a ton of room there to make what seems to be factual statements about value ..but in reality are just shadows.

2) Whats happening now and how this triangle looks alot like the 2005 triangle.. I expect a retrace but one that has little to do with Bernanke buck burning and more to do with leveraged shadows.



and of course whats really important ..finding balance with your girl

Tandem Surfing

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