USDJPY: Massive Base Pattern Progressing

My sense is most of the market has no idea how stagflation works and another big segment that thinks it knows, is running off of lessons learned in the 1970s that don't all apply anymore. The 1970s saw the rise of the Japanese and German economies back to parity with the United States. The U.S. was a major energy importer, had very low debt and low imports. Today, the U.S. might be the least exposed of the major economies, including China, should stagflation erupt.

As for the chart, if this were to complete it calls for a massive depreciation of the yen. The neckline of this inverted head-and-shoulders isn't that far away, less than 15 percent, but the yen has been slow-moving in the past. This could be several years away or one bad year away.