USD JPY Daily Chart Getting Close to a Buy

The U.S. Dollar weakened versus the Japanese Yen on Wednesday. Traders were mixed in their opinion as to why the USD JPY fell. Some felt it was caused by flight-to-quality buying because of lingering U.S. banking issues. Others felt that although Japan’s exports were down from last month, they were slightly better than last month. This news was interpreted as the start of possible bottoming action.

Smart money realizes that exports are still down and the market is far from a recovery. This is why any substantial rally will be met with renewed selling pressure.

The U.S. Dollar weakened versus the Japanese Yen on Wednesday. Traders were mixed in their opinion as to why the USD JPY fell. Some felt it was caused by flight-to-quality buying because of lingering U.S. banking issues. Others felt that although Japan’s exports were down from last month, they were slightly better than last month. This news was interpreted as the start of possible bottoming action.

Smart money realizes that exports are still down and the market is far from a recovery. This is why any substantial rally in the Yen will be met with renewed selling pressure.

The daily swing chart is indicating the USD JPY is getting close to a buy.  Don’t be surprised by a reversal to the upside tomorrow.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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