I know many of you are watching UJ when trading gold... There's a very important pattern developing on the UJ UJ chart. After a 7 months consolidation ( downtrend in a down channel) we had a character change. Price didn't turn down immediately in a V shaped form as did before. It sticked to the trendline an started to crawl along it. I think the Bank Of Japan started its preparation for the stock bubble pop. When the next recession starts they will need the Yen to be as weak as possible otherwise they will have a serious problem with their export... So the powers will need this pattern to break to the upside and no more tag will be of the lower trendline of the channel.
So after the trendline crawling price dropped but as I mentioned in the previous UJ post it doesn't look good to me. That's why I exited the shorts with small profit. 2 days ago we broke out of the flag . Yesterday it seemed to reverse but as of today it seems we are really heading higher and once it breaks from the channel the bounce will be big. I tried to set some target price from the pattern. I know it seems a bit irrealistic now but on the bigger picture it is just the back test of the previous high.
The flag is huge. Think. Big moves are not coming when retail expects it. Big moves are coming when the small guys are not in the trade.
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If you are playing the USDJPY and EURJPY I think the USDJPY will be bigger gains:
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As we are waiting for the dollar to bounce in the following weeks.
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After a gap open my saxo platform is showing 113.87 now.
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So the follow-through is on the way after the trend line break