FOREX - Dollar/yen soars as Japan acts to curb yen gains (Reuters, Sept. 15) -- The dollar leapt more than two yen from a 15-year low on Wednesday after Japan intervened to sell yen for the first time in six years ...
Central banks interventions in currency markets are always a major forex event. Of course, you never know just when a bank may step in. But with the right forecasting tools, you don't necessarily have to know.
The series of forecasts you see below are all bullish on the U.S. dollar and bearish the Japanese yen. EWI's Currency Specialty Service posted them hours before Japanese intervention -- all because of an Elliott wave pattern called "diagonal triangle" visible in the USDJPY charts before the BOJ had acted. See for yourself:
[Daily Forecast, Tuesday, see chart below]
Update For: Wednesday
Posted On: Tue, 14 Sep 2010 19:27:03 GMT
USDJPY, Last Price: 83.10
[Nearing a low?] If a diagonal triangle is nearing an end, the dollar must find its footing above 82.56.
[Intraday Forecast, Tuesday Evening, see chart below]
USDJPY (Intraday)
Posted On: Sep 14 2010 6:41PM ET / Sep 14 2010 10:41PM GMT
Last Price: 83.11
[Nearing a bottom] Based on the diagonal triangle scenario, the downside limit for wave (v) is 82.56. Gains above resistance levels at 83.26 and 83.47 would start to make a good case that a significant low has formed...
[Intraday Forecast, Overnight Forex Session, see chart below]
USDJPY (Intraday)
Posted On: Sep 14 2010 9:45PM ET / Sep 15 2010 1:45AM GMT
Last Price: 83.85
[Up] Wow. With intervention being reported, it would almost seem that the BOJ either has an Elliottician on staff, or has a clandestine subscription to our updates. Prices are behaving EXACTLY as Elliott suggests they should given the completion of the ending diagonal. The sharp advance bolsters the larger view that a sizable rally lies ahead...
"The Bank of Japan... intervened at a time that the dollar should have rallied relative to the yen. We pointed to the ending diagonal triangle pattern and pointed out that...the dollar had to reverse... Reverse it has," summarized Currency Specialty Service editor Jim Martens in a Wednesday morning intraday update.