USD JPY May Be Setting Up Hourly Counter-trend Buy

Following a prolonged move down in terms of price and time, the USD JPYposted an hourly reversal up early this morning. The subsequentfollow-through to the upside confirmed the reversal bottom.

Following a prolonged move down in terms of price and time, the USD JPY posted an hourly reversal up early this morning. The subsequent follow-through to the upside confirmed the reversal bottom.

The first leg up is 96.63 to 97.43.  This range creates a retracement target at 97.03 to 96.94.  Watch to see if the market can create support in this zone.  If a support base can be built then look for the start of a counter-trend rally.  The hourly chart will turn the main trend to up on a trade through the swing top at 97.43.

Although there may be penetrations of the target prices, regaining these levels will most likely scare the shorts out of their positions. This move is very similar to how the Euro bottomed earlier in the week.

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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