The rally in the Euro/Yen has truly been impressive over the past 5 weeks, helping to push commodities and stocks higher. The first of September I felt that the pattern in the Euro/Yen was the key to pushing stocks higher (see post here). Following the Euro/Yen breakout, the typical soft September was anything but soft, with the 500 index having a great month, up over 8%.
Now the Euro/Yen pattern looks almost the exact opposite, per getting closer to the top of its falling channel and creating a bearish wedge of late. Also keep in mind that “Trade-Futures.com” reported a couple of weeks ago only 5% dollar bulls! IF the pattern message in the Euro/Yen is correct, the dollar rallies and causes a few frustrations!!!
The pattern in the Euro/Yen reflects another reason to pull UP STOPS in Commodity and International positions RIGHT NOW!