Will the yen surprise investors by how it moves out of this test?

The XJY chart that I use for tracking movements of the yen shows that XJY (or FXY if you chart that ETF) has moved into position to confirm either one hypothesis, or the other. One is that the XJY completed a large Elliott Wave flat (apparently needing that one more low under its 200-day moving average to complete a fifth wave for the C-wave of the flat ABC) and is now in process of moving to new highs. The other is that XJY is only completing a pullback and will very soon roll over much lower. Moving above the 106 or especially 106.88 level on this chart will help confirm the first hypothesis. You can also see on my monthly chart (daily and monthly charts are both below) that I've got channels marked that XJY should remain above in order to stay on track for that. Breaking under those channels, and moving under the 200-day moving average, would see XJY moving lower (with one level at about 83 for that scenario).

Investors should keep an eye on the yen partly because of the inverse relationship that the yen tends to have for equities markets.