Japanese Yen: Yen crosses look poised to breakout from symmetrical triangle pattern
The Yen crosses appear ready to have a sharp breakout on a four hour chart.
The GBP/JPY has already decided which side it wants to take, see chart below:
Are AUD/JPY, CAD/JPY, EUR/JPY, and NZD/JPY ready to follow higher and breakout of the triangle wedge? See the charts for yourself:
AUD/JPY - 4hr chart
CAD/JPY - 4hr chart
NZD/JPY - 4hr chart
EUR/JPY - 4hr chart
These breakouts will be contingent on the following factors:
- Risk appetite - risk on vs. risk aversion
- Greece continued default scare
- May profit taking
- 10yr treasury yields - higher yields = lower yen= higher yen crosses
I would not make any trades this week considering many traders will be leaving early for the US Memorial Day holiday weekend, seasonally a bullish end to the week. The first two weeks of June will show us the path which we can ride till the end of the summer.