USD/JPY: Carry Trade – Weekly

The Carry Trade. Quiet when it wants to be. Explosive when it decides otherwise. Few corners of the financial markets can look so ordinary on the surface while carrying the potential to shake the entire global financial system. And when the Japanese Yen starts moving, the consequences can reach far beyond the currency market. But is the Carry Trade preparing another surprise, or are the recent moves just business as usual? The candles, technical indicators, and Elliott Wave structure may have a few clues. And as we know, the Yen rarely asks for permission before making its next big move. Let’s see what the charts are telling us. CANDLES It looks like the candles have positioned the Dollar to demonstrate its strength. Friday’s daily candle closed with a Bullish Engulfing, while the weekly was moderately bullish. The momentum could extend significantly if the 8D candle closes on Tuesday with a…