 Hello, welcome to this week's CMC markets currency snapshot this week. We're going to look at the dollar yen Namely the US dollar against the Japanese yen and the reason being we've just had some interesting comments from the Japanese Prime Minister Abe and There's an interesting technical chart set up with some key price levels that we want to examine Now we're coming off the back of a 10 week run in the US dollar Against a broad section of currencies and one of the weakest of which has been the Japanese yen Which is pushing into recently six-year highs? now that was a Preference for the Japanese government in fact part of their policy has been to weaken the Japanese yen Through a quantitative easing program cylinder that done in the US In order to boost their exporters Sony and Toyota and the like just to to boost the Japanese economy But it does appear based on recent statements that perhaps the Japanese yen is getting a bit too weak Or if not too weak perhaps weakening just a bit too quickly as this latest rally has been essentially parabolic Now what the Japanese Prime Minister has come and said is that he will be monitoring the weakness of the Japanese yen In case it has some adverse effect on some of the Japanese regions so that could be taken as a Slightly uncomfort from the Japanese government so when you combine that with the flip side of the coin in that in the US at the latest Federal Reserve meeting they've said that Essentially, they'll be keeping the Interest rates close to zero for a considerable time. This is the key statement. They've been leaving in their central bank statements So there's been a slight change this 10-week run in the US dollar was based on an interest rate hike Imminently occurring in the US the Federal Reserve have set expectations back a bit saying that they were going to leave rates low for Considerable with period of period of time Whereas in Japan what was a policy to weaken the yen has kind of pulled back a bit So let's have a look at the chart and see why these price levels might coincide with these fundamental events So what we have here is a weekly candle stick chart for the dollar yen Now you can see There have been a couple of triangle type formations with a rising trend line Having touched multiple long-term swing lows Now what I've done here is use the Fibonacci extension indicator in the CMC markets next-generation platform to project the height of these triangle patterns into The future from the breakout point to give us a future target now what you can see is that from the first triangle breakout The subsequent top in the price coincided with a sixty one point eight percent extension of that first triangle height Then we saw a correction Now what's happened since is we formed a another triangle as mentioned that break out Rallyed straight up saw a slight pause at its sixty one point eight percent And now what we're running into is the first triangles a hundred percent extension of its height And that coincides with the the 109 round number as well as the May 2006 Large low which coincide with a massive reversal that month So it's either going to be a matter of here Or if we do see a run higher potentially this one ten 67 which was the August 2008 high which had a large bearish reversal in that month coinciding with the hundred percent extension of that second triangle could be an area of resistance should we get through here But there is some pretty stiff resistance coming up and this move is looking pretty overextended So this latest set of news is a risk to the dolly yen and we we could see a pullback here Right, thanks for watching this week's CMC markets currency snapshot. We were talking about the dolly yen Keep an eye on these Fibonacci extension pattern extension price levels But also see how this Japanese government and the Federal Reserve in the US are reacting to The way the dollar and the Japanese yen are moving