Improved U.S. Economy Pressures Yen

The USD JPY hourly chart has turned up for the first time in a week. This move is likely short-covering as this pair has been down for over14 days.

The USD JPY hourly chart has turned up for the first time in a week.  This move is likely short-covering as this pair has been down for over 14 days.  The current bottoming action suggests that a possible bottom could form but it may take several days to build a support base. 

The best indicator of a strong bottom will be a daily closing price reversal up, but this will not occur unless this market closes over 96.75. The formation of a reversal bottom could put this market in a position to retrace  back to 98.53 – 99.22.

Weakness in the U.S. banking sector and equity markets should continue to boost the Yen.  The slight strength in the U.S. economy indicated by better than expected housing prices and improved consumer confidence is putting pressure on the Yen today.

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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