Japan has been pretty dull but stubborn for a few months here aside from the 5 minute Abe resignation drop … even the Nasdaq breakdowns barely registered … but expecting this wedge with divergences and a series of marginal highs to finally break down tomorrow of the selloff sticks today … wonder what will happen if so – a real drop or just a visit back to the bottom of the recent zone for a third time … truth is, life is not so far from normal here – just fewer people out on Tokyo streets since the tens of millions of yearly tourists (mostly Chinese) are missing this year … been looking through lots of Nikkei 225 stocks and though still most of them have been in bear markets since 2018 or 2015/16 highs, a lot up against long term resistance, some have poked through those trend lines and, intriguingly, I see a good number of divergent lows in place on longer time frames, days and weeks … I was interested in the American bank breakdowns because some of the Japanese banks are looking like they are setting up and some of those banks have dividends at juicy levels if they can be maintained (boring trades I know but nothing makes my family happier than seeing dividend payments – they almost could care less what the value of the account is if they see those – Japanese style thinking) … (and I see the Yen down to Randy’s 104.5 area at the moment)

Perhaps with Abe stepping down the market is theorising monetary policy may not be quite as easy as it has been throughout his era?

Also worth noting USD/CNY the USD has been hammered against the Yuan. Speculation that the Chinese are dumping US treasuries in favour of hard commodities.

oh I see my 104.84 Yen number was exact for the bounce … since I have had that line for a while I wondered where an amateur like me originally got that … turns out that was the 2013 yearly close and peak the last week of December 2013 … except for the pre 2016 election months and the recent fear spikes that has been a reliable floor since breaking out above – it has tagged it number of times with these tags getting close together now … I think it has gotta break looking aside from the stock markets the world is staring at recession … speaking of exact just reminded me that I had had your JO price target of 40.70 staring at me on my board for these weeks and it hit it exactly right to the penny … thank you!

oh thanks Randy @rsotc! just what I was fishing for! … truth is I am in Japan so I have to keep an eye on the Yen – not much use in making an investment in a stock in america if the yen the strengthens and takes away the profits – found that out the hard way in the first half of 2019 when I was just starting with managing my family’s accounts … between currency movements, brokerage fees (and the prehistoric nature of working with the brokerage I am stuck with), the Nikkei’s habit of responding to America’s day by gapping and hanging out, and an extremely limited selection of ETFs to work with my life has been too complicated … but gold and Japanese REITs (1343.T if you are ever curious) were very good to me last year and much less stressful than the SP500 etc … but enough about me and my woes … yes, the USDJPY has been a triangle festival for 5 years and my monthly trend lines are basically the same – got fooled by the impulsive breakout in Feb that turned out to be false because I had been watching that big triangle you have for direction at the time – especially since peaks in USDJPY seemed to match SP500 and Nikkei peaks pretty clearly … so I guess the “pretty clear” breakdown on the daily is still muddier than I was expecting … but the truth is my eye is primarily on that 104 and change level – if the YEN moves into 104-100 territory that will be significant …

Nice setup, thx for sharing.

The US is the new Japan. Do a web search on ‘Japan’s Lost Decade’ & note the similarities to Japan back in the early 90’s & the US today, including the current “zombifying” of the US banks.

..and my USD/JPY weekly chart…

Thx for sharing that. Here’s my daily chart of USD/JPY although I’d prefer to see one more reaction here on this tag of the uptrend line to validate it.

Yep. The FAAMGs have underperformed on the recent bounce, especially the 3 largest/top-weighted components; AAPL, AMZN, & MSFT. Several days doesn’t make a trend but something worth monitoring as the market isn’t going very far without those 3 stocks.