U.S. bond market extends global rally, Fed’s Waller provides some relief
USD/JPY
After about the first week of November, I began to notice something...a pattern forming...that I vocalised in the various TV broadcasts I'd made during November and which I have no doubt some of you have seen. In essence it was this, the whole action September-to-date is a Large Bearish H+S Top? Increasingly it seems to be forming that Pattern as though we have a Split Head that could also be seen as a Double Top, I'm more inclined to view it as a Large Bearish H+S Top and we are possibly forming the second Shoulder at this time...you can see this on the Daily Chart above.
The Neckline is about 110.69 now but it means little till we breach it and see how far the first wave goes lower before recovery takes us. This past week we've had a Pipe Bottom formed on the recent 50% Fib at 110.91 which punched us back up over the Long MA (currently 111.66) and we've then seen the extension and seemingly failure on this past Friday with an indecisive Outside Day offering no further comfort to those Bullish but equally not showing direction for those Bearish...we're after all still above the Long MA. The next few days will be very interesting to the development of this H+S Pattern. If we close consecutively over 113.50 then it would basically be dead as an idea. Yet the lack of backing and filling by the current market for the second Shoulder is not helpful to the Bears. An interesting few days...
Support is currently at 111.96, 111.75, 111.66 (dynamic), 111.41, 111.17, 110.91, 110.69 (dynamic), 110.06, 109.89, 109.54 and 109.09 (dynamic).
Resistance is currently at 112.70, 112.87, 112.98, 113.91, 114.06, 114.32 and 114.50.
Bullet point above goes into mildly Bearish in possible anticipation.
Disclaimer: ADM Investor Services International Limited is authorised and regulated by The Financial Conduct Authority. Member of The London Stock Exchange. Registered office: 4th Floor Millennium Bridge House, 2 Lambeth Hill, London EC4V 3TT. Registered in England No. 2547805 a subsidiary of Archer Daniels Midland Company. Risk Warning: Investments in Equities, CFDs, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value, investors should therefore be aware that they may not realise the initial amount invested, and indeed may incur additional liabilities.
These Investments may entail above average financial risk of loss, and investors should therefore carefully consider whether their financial circumstances and investment experience permit them to invest and, if necessary, seek the advice of an independent Financial Advisor. Some services described are not available to certain customers due to regulatory constraints either in the United Kingdom or elsewhere. © 2014 ADM Investor Services International Limited 2014.
