By Sean Hyman As I was sifting through my charts this past week, one jumped out to me BIG TIME, and I wanted to share it with you. It was if the planets had aligned technically AGAINST one currency pair.

Which pair? The USD/JPY pair! (Or buying the dollar and shorting the yen.)

In other words, the dollar is about to sink, while the yen rallies. Check out the chart below and you’ll see what I mean…

A Technical Nightmare for the Dollar vs. the Yen!

If there were ever a sign that the yen is about to beat up the dollar, this is it! Let me explain…

MANY Technical Patterns Converge All At Once Against the Dollar/Yen!

Gosh, where do I even start?

First, the pair broke its green uptrend line. That means it’s about to fall. Enough said, right there!

However, it gets much worse. The MACD (or moving average convergence divergence) starts to diverge which shows that there’s likely more “follow through” to the downside coming. The MACD further confirmed its negative signal by dropping below the “zero line.” These are all signs that a change in the trend is coming soon.

Then I noticed a Head and Shoulders is also forming. That’s a bearish sign for the USD/JPY as well. See it illustrated above. It confirmed the pattern by breaking the “neck line” (the yellow line). This pattern alone gives the pair a MINIMUM price target of 90.00!

But wait, there’s still more! The pair broke back below its 200 simple moving average which also confirms the downward trend.

The pair has also established its first set of “lower highs” and “lower lows.” That tells me it’s about to drop.

I’m telling you – it’s like the planets have aligned against this pair! The yen is preparing to kick the dollar’s tail!

With so many patterns coming together at once, I’d think that we could see 90 reached on the USD/JPY pair sooner, rather than later. It’s like the perfect storm for this pair – and a perfect shorting opportunity.

Buckle up your seat belts, this ride should be interesting!

Until next time…happy trading!

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