Yen Stop

Friday 22 May 2009

The volume on yesterday's Yen rally was
very strong on the sell-off washout to 105,
about mid-morning, creating a volume
demand bar up, from 105.oo to 106.00.
A 50% retracement is 105.50.

This morning's sell-off low is 105.60,
holding just above the 50% retracement,
which is what price should do in an up trend.
As long as Jun Yen can hold above 105.50,
it should work higher.

The current 240 min chart is closing above
mid-range, a good recovery from the sell-
off low. Yen has some overhead activity to
negotiate, 106.05 to 106.60, so the security
of 105.50 has yet to be proven.

Keep an open sell stop of 105.55, replacing
the earlier day stop of 105.45. If the probe of
the low at 105.61 is exceeded, the probability
of higher prices is reduced sufficiently to take
a neutral position and see where equilibrium
will be established.