It looks like this bull run on the Yen could be coming to an end for the time being.
Twice in 2 days our short term red has cut below the blue and I wouldn't be surprised if we saw some downside action today.
Yesterday saw the price move around 50 ticks above the pivot, which did present around 3 short term buys. However, none of which really managed to sustain much of a continued run. Each small upside burst was a short-lived 15 tick move followed by a slump so the trusty Crocodillion would have only snapped-up 5 ticks from each, possibly 10 on one or two trades if very lucky.
This tells me that momentum is running a little dry and couple that with treble top on price action with diminishing RSI, there is a lot more to the downside that could be quite attractive.
It's non-farm tomorrow so perhaps today will be a slow day. Right now the green is below the red which is below the blue, so I am keeping my eyes open for this to fall, but right now there's a little upside momentum back toward the PP.
When looking for the big reversal it's always important to see where the blue 60m ema is in relation to the lilac 4hr ema. How big is the gap?
As you can see with this situation the difference between both lilac and blue is only around 20 ticks. The red only about 10 ticks or so from the lilac so although not perfect yet, once they get closer to the lilac they will add tremendous downforce and a lot of resistance, but at the same we need the price to remain below these averages to assist in their fall. A pop-up back above the PP would be mission abort!
If this were to come back below the green/red/blue then look where DS2 is......it's all the way down a 9.780 so there's a lot space for this to move, it's just got to negotiate the 4hr ema at the 9.840 level before it can begin it's journey.
Once it gets a little closer I will post an update.
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