[DanRath]

• Short USDJPY at 93.55
• Stop loss: 94.95
• Target: 87



• USDJPY has been forming a head and shoulders pattern over the past 5 - 6 months. Yesterday it closed back below the neckline at 94.12 and has also formed a short term evening star pattern as a result of the poor closes this week

• Also long end U.S. yields are likely to move lower from here, further supporting the move down in USDJPY

As a result - establish a short USDJPY position at 93.55 with a target of 87.00

U.S. 10Y Yields and USDJPy


U.S. 10Y Yields last summer and now


• Last summer U.S. 10Y yields peaked on June 13th, fell for 22 sessions and bounced back to the 76.4% Fibonacci retracement against the high

• So far this summer, U.S. 10Y yields peaked on June 11th, fell for 22 sessions and have retraced to the 61.8% Fibonacci retracement against the highs, which is at 3.72% and was the high this week.

• Lower yields are expected