“USDJPY bulls must use caution going forward,” is the ominous warning BofAML’s MacNeil Curry sends as the firm closes its long position on reaching their upside objective of 104.60. A closer look at the uptrend from early October says that this is a maturing advance and is growing increasingly prone to a reversal. From an Elliott Wave perspective, Triangle breakouts represent the terminal move of a trend, meaning that the potential for a top and medium-term reversal lower is growing quickly; one that could ultimately take prices back to the 97/96 area. While this is likely a story for 2014, Curry warns – USDJPY bulls should beware.
Of course, crucially, if USDJPY rolls over, so does the house of cards equity market with it at the margin… but fundamentals still matter right?
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/kSC40jQ8f04/story01.htm Tyler Durden