“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?
via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/kSC40jQ8f04/story01.htm Tyler Durden