Major Trend Change Coming for the First Time in Three Years!

By Sean Hyman

Every day, I scan through my charts looking for any new major technical changes as I scan over about 30+ pairs.

Here's one that looks interesting to me. The USD/JPY has recently made a trend change. In fact, why this is so "monumental" to me is because this trend just changed this month after having been in a downtrend for the last 3 years straight! Check it out on the chart below.

USD/JPY Is Holding Its Current Rally - All Aboard!  

It appears that this present leg of the larger rally even has more steam left in it. According to my Elliott Wave counts, we should see the pair hit at least 95 to 98 in the weeks to months ahead.

Oh...and one other note on figuring out USD/JPY...don't think about what the dollar is doing vs. other currencies...and don't even think about what the yen is doing vs. other currencies. You have to judge this one on its own.

Much of the reason for that lies with the dollar and yen rising and falling pretty much at the same time. In other words, there's not a lot of divergence between these two currencies. It is simply a matter of which one is outpacing the other at the time.

For instance, over the past three years the yen was rising faster than the dollar and that kept the USD/JPY in a downtrend overall. Now, after three years, the table has finally turned and the dollar has the edge over the yen.

These long term trend changes don't take place all that often. Usually you won't get but one trend "true" trend change but every 1-3 years. So take note when they happen and also realize that you probably have less risk overall in a longer term trade by being in it near its beginning than later on (when everyone else recognizes it) towards its end.

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