Yen: A Break Out From A Bottoming Megaphone
Trader Moe | Oct 22, 2014 01:13AM ET
The yen had a legal breakout from a bottoming megaphone (purple on chart). Since the breakout, it’s been forming a head and shoulders with a neckline at the megaphone top.
If the head and shoulders actually completes and breaks out downwards, the target would be the purple megaphone bottom. The move down would confirm the strong move up in the SPX, and would imply that the stock market will make it to a new all-time high.
However, the yen keeps resisting the obvious move down, and may be setting up a move to past the H&S high (green scenario on chart).
An upward breakout from the yen H&S would likely throw a kink into the market rally.
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