Yen Update

I am convinced that the Yen stands to be a wonderful short for years to come, and I have spent time already posting the chart and pointing out weakness.  Nevertheless, lately the chart is telling me something else.  Whether you want to call it an inverse head and shoulders or a cup and handle, I think there might be a rally coming.  As in the past, I am using FXY as a proxy.  My tentative read is that the ETF could make a move back up to 128ish if it breaks through 122.50.  In actual USD/JPY terms, a break below 81.65 could signal a move to at least 78.10.  Take a look for yourself.

Update: After taking a look at the USD/JPY chart, the number of interest is ~80.5, with a break below potentially signalling a move to the 76-77 area.