Put The Yen On Your Watch List

YENAfter trading in a tight range since December, the Japanese yen experienced a concerning technical breakdown recently. The yen has been in a steady downtrend for much of the past two years thanks to Bank of Japan?s Abenomics monetary stimulus program. The yen is now at a twelve year-low versus the U.S. dollar after BOJ Governor Haruhiko Kuroda stated that he is willing to adjust monetary stimulus to hit the central bank?s inflation target.

From a technical perspective, the yen broke down from its six month-old wedge pattern ? a common chart formation that often leads to further moves in the direction of the primary trend. The bottom of this wedge is .8200 (which corresponds with 122 in the USD/JPY), which is now a resistance level. As long as the yen is below this level, the technical breakdown remains intact, but a break back above this level would negate the recent bearish signal.

Read more at?FORBES