Flight-to-Safety Buying Pressures USD JPY

Flight-to-safety buying has the USD JPY under pressure overnight.News that the CIT Group may file for bankruptcy has been making tradersnervous for two days, but explosions at hotels in Jakarta overnightencouraged traders to take protection.

Daily Analysis

Flight-to-safety buying has the USD JPY under pressure overnight. News that the CIT Group may file for bankruptcy has been making traders nervous for two days, but explosions at hotels in Jakarta overnight encouraged traders to take protection.

The current break in the USD JPY is coming two days after the recent rally failed at 94.46, slightly higher than the 50% retracement level at 94.36.

The short-term chart indicates a break to 93.10 is likely if weakness persists today. 

Daily Chart

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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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