Monday, May 15, 2006
Here is a weekly chart of the cash dollar-yen pair.
I have drawn lines that show the multiples of the all time low price of 79.80 which was reached in April of 1995.
I think the dollar-yen has completed a move down from the 121.38 high reached last December 4. It has stopped at the 1 and 3/8 multiple of the 79.80 low which stands at 109.72. I would expect a low around here because the more important low of January 2005 occurred at 101.67. The 1 and 1/4 multiple of the 79.80 low is 99.75 and so I would expect the next low to occur at the 1 and 3/8 mutiple because I think the yen is headed much higher.
The next important upside target for the yen is the 1 5/8 mutiple of 79.80 which is 129.67.