The market is preparing for a historic crash, and one of its ingredients is the downtrend in USDJPY.
When China comes back from holidays the first thing we'll see is USDJPY at 100..102 (the primary wave 1). This should correspond to the primary w1 of the crash in Stocks. Then a correction, possibly waiting for Fed to react in March, and then wave 3 and 5 of the crash happens, sending the Yen to below 90.
The move in the Yen is tightly linked to what's coming in EURJPY (see my analysis attached), where a decade-long triangle is finished and a strong downtrend is expected. The coming swing low in USDJPY will be the last one of that size in many years, and EJ is ripe for a big move: so structurally they do confirm and reinforce each other.
When China comes back from holidays the first thing we'll see is USDJPY at 100..102 (the primary wave 1). This should correspond to the primary w1 of the crash in Stocks. Then a correction, possibly waiting for Fed to react in March, and then wave 3 and 5 of the crash happens, sending the Yen to below 90.
The move in the Yen is tightly linked to what's coming in EURJPY (see my analysis attached), where a decade-long triangle is finished and a strong downtrend is expected. The coming swing low in USDJPY will be the last one of that size in many years, and EJ is ripe for a big move: so structurally they do confirm and reinforce each other.
