By Martin Miller — Dec 31 - 03:45 AM
• Year-end yen strength extends on the Japan holiday
• USD/JPY has slumped from 157.06 to 156.06, on Tuesday, EBS data show
• Spot is back below the broken 156.68 Fibo, after a number of days above
• 156.68 Fibo is a 76.4% retrace of the 161.96 to 139.58 drop
• If spot closes back below 156.68 Fibo, that would a "bull trap" and bearish
• A bull trap is set when a mkt breaks above a tech level but quickly reverses
• The 30 and 60-day correlations between USD/JPY and EUR/JPY are high
Daily Chart:
Correlation Chart:
(Martin Miller is a Reuters market analyst. The views expressed are his own)
Source:
London Stock Exchange Group | Thomson Reuters