Yen Technical Outlook

Published May 15th, 2009 - 06:55 GMT
Al Bawaba
Al Bawaba

The USDJPY has broken beneath its 2+ month head and shoulders neckline.  This development is bearish and even more so in the context of long term wave structure, which suggests a new all time low (below 80).  However, I want to urge caution as the pair approaches 93.50.  The circled area could still be a triangle in the X wave position.  With this in mind, bears may want to lighten up.