Dollar/Yen making Daily Reversal Bottom

Ahead of the release of this afternoon’sFederal Reserve Beige Book, the U.S. Dollar is trading weaker against mostmajor currencies. This report shouldn’t be a market mover, but traders shouldread it to gain a little more knowledge into what the Fed looked at when itmade its recent Federal Open Market Committee decisions.

Ahead of the release of this afternoon’sFederal Reserve Beige Book, the U.S. Dollar is trading weaker against mostmajor currencies. This report shouldn’t be a market mover, but traders shouldread it to gain a little more knowledge into what the Fed looked at when itmade its recent Federal Open Market Committee decisions.

The Japanese Yen is under pressure versusthe U.S. Dollar at the mid-session after rising to a 15-year high against theGreenback. Strong moves in the equity markets are helping to revive thecarry-trade, underpinning the USD JPY. The Dollar/Yen also got a boost thismorning after Japanese government officials expressed apprehension about therise in its currency.

Technically, the USD JPY is forming aclosing price reversal bottom. This pattern, if confirmed, often triggers thestart of a two to three day rally with a minimum objective of 50% of the lastswing down. If this is the case this time, then look for a short-termretracement to at least 84.63.

The USD JPY chart will get most interestingif 84.28 is regained. At this time, the Dollar/Yen is set up for a weeklyreversal, but a close over 84.28 will put the market higher for the week,forming a reversal bottom.