2014 predictions: USD/JPY- sell rallies to 112.00
- Since I started trading in 1986, the one constant has been a bearish USD/JPY trend;
- There is strong long-term technical resistance near 111.50/112.50 (see chart);
- The market is very bullish on USD/JPY and already very long;
- This trend may continue but as we know, governments change very often in Japan as does policy. One sniff of such a change and we will see a rout of USD/JPY bulls.
Prediction: Look for a top to form somewhere near 112 in early 2014 and catch a wild stop-loss driven ride back down towards 90.