Before I say what this chart is, consider whether you think it has a chance of continued rising, since the beginning of the year, or resuming it’s fall since the end of 2012. (And that was your clue as to what it is.)
MACD appeared to have bottomed in 2013. RSI too and heading for 0+.
It seems to me this looks as if it may have stopped falling. As to whether or not it will rise, that is still a little early to say.
What is it?
It’s the $XJY:$NIKK.
If it does break up, it means, probably, the ¥ is rising and the Nikkei is falling.
If this happens, would set up a superb long term buy point, in our view, for Japanese equities. Maybe at sub 11,000 or even sub 10,000. It was c 40,000 in 1989… As at late 2012, it was as low as c 8,000. Currently, it’s c 15.000.
NB. Hedge against a debasing currency.
Copyright Jonathan Davis 2014