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The chart above takes a look at the U.S. Dollar/Yen ratio over the past few decades. Monthly resistance line (1) has been in play for the past 18-years. As the month of May is nearly over with, the US$/Yen is making an attempt to break above this long-term resistance line.
It is frequently expressed that Yen weakness, can be a positive for the Nikkei 225 index. Below looks at the Nikkei Monthly, over the past 30-years.
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This chart reflects that the Nikkei is working on a break above its 38% Fibonacci resistance level, that is tied to its highs in 1989 and the lows during the financial crisis back in 2009.
The Nikkei over the past 6-months is one of the better performing stock markets in the world.
A breakout in the US$/Yen and the Nikkei increase the odds that the current trends in play, continue.
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