Yen Crosses…USD/JPY

Posted on 04/07/2011 at 10:53 AM

The yen futures double bottomed last night showing that the one way train in the yen crosses was very long in the tooth and a correction was afoot. The first area to look to get some back on is off 119.60 ish in the futures app 83.58-68 USD/JPY ( just happens to be around the 200 day mvg avg.) This is the level to sell Yen ( buy USD/JPY small to try and leg the cross) In general I do not like to re post something I wrote however I feel this is a good teaching moment. You are never sure when or in what time frame you’ll get the levels you’d like to trade at ( THE LOW RISK AREAS). Last night you got them on the Japan reactor news.

TODAY!! we will be focused on the equity indices to see if they hold or fail. The Spu needs a close back over 1320, the Nasd 2300.

It’s of interest that AUD/JPY failed to put in an outside reversal day yesterday to the downside by 8 ticks. This simply means you can get a good correction with the overall chart pattern, which is bullish, remaining intact on a long term basis. You got a pretty good one last night.

OIL will be a big trade between 110 and 107.50 ish. Sell the rallies with tight stops. A close below last night’s lows and more weakness will be forthcoming.

Gold…we will be monitoring the 1458.50 level during the pit session for a possible breakdown in the chart pattern.

30 Yr Bonds ..we’ll monitor for a while and then write a stop.