Let's take a look at the JY weekly. Definite downtrend. However, we have had a long grail here which is an indication of possibe reversal. Now, looking at the weekly chart, we can draw a parallel between the current action and the action from 08/05/06. --There was the long grail--double bottom RSI which turned out to be false. --See attached chart-- I will then post an analysis of the current daily chart as compared to the daily in August in the next post or two.
Here now is the Yen futures daily continutation chart between August of last year and current action. As you can see, the charts are quite a bit different. Right now, I believe long is the way to be. There may be pullback, but I will not be shorting right now--rather I will be buying additional strength that occurs after a pullback. --at least until further notice.
Attached is the hourly JYH7 chart. I could perhaps see a profit protective stop below the reaction low, and then look for future long trades.--All subject to change of course.
The following is a list of my current long March euro fx positions 130.610 131.380 131.280 131.440 131.650 Average price is 131.272. Current price is 131.410 I was a little disconcerted this morning when I woke up to see we had sold off. However, we had not breached reaction lows on the daily and the 20 MA is still upwards. Any thoughts I had of getting out right now were thrown out when I saw the following chart pattern. If I am wrong, I will get out with a small loss relative to portfolio size as usual. This is m position though now.