Cleopiptra

The plan to play the upside on the USD/JPY was a good one but the 30 minute chart got pretty sideways and sent to looking for another intraday time frame where I could identify the uptrending market cycle.

Think about this: How often to fundamentals and I’ll throw most analysts in this mix, explain what has happened only after the fact?

There is a larger triangle pattern that is forming on the daily USD/JPY but in the meanwhile a lower risk, shorter term entry as we go into the weekend and the G7 meeting is a swing set on the 30 minute chart.

I’ve been watching the dollar to see where signs of safe haven unwinding may occur. I am neither expecting it nor forecasting it but I do need to know where the dollar might start to correct.

As the daily EUR/USD continues to bounce lower off the 34EMA low (bottom line of the Wave) the U.S. Dollar Index has found its way higher above the psychological 86.00 level. The shift of psychology for dollar strength is significantly improved by trading above the “00”.

The U.S. Dollar Index is selling off today as the EUR/USD is rallying in what is still a downtrend. The dollar is trading at 85.25 this afternoon as London has called it a day and is likely enjoying a pint after a long week. So what does this move higher mean?

The cable is “resting” after a day that has a lot of traders scratching their heads. The price action after a 50 basis point cut is not generally known to cause a rally. The point here though, as is always the point in CHARTOLOGY is that price tells the most accurate story

Take a look at my last post and you’ll see the USD/JPY in a congestion pattern, a triangle, as the Dow headed lower. But alas the Dow was looking for a reason to rip.

The Dow and USD/JPY are correlated charts. As the Dow weakens the USD/JPY moves lower. It’s a sympathetic relationship. So this morning as I see the falling wedge pattern on the Dow, I expect lower lows, especially after yesterday’s break of 8,000.

Two patterns have emerged on the daily chart of the EUR/USD. The qualifier here will be the eventual market cycle that settles in this week.