Yen Traders Should Watch for Reversal Bottom

Now that the USD JPY is nearing a key support area, short traders should be aware of a possible closing price reversal bottom and take precautions to prevent a possible retracement.

Now that the USD JPY is eight weeks from the top and nearing a pair of bottoms at 87.11 and 87.09, short traders should begin to watch for a possible daily closing price reversal bottom.

Although the main trend will not turn up on the daily chart until 92.53 is penetrated, shorts face giving back gains to 90.38 to 90.89 if a closing price reversal bottom is formed at 88.23.

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