Selling Yen
Mid-Day Minute for Wed March 10th 2010
by Mike Paulenoff, www.MPTrader.com
Apart from the fact that apparently the equity market never goes down anymore, the potentially most exciting technical set-up is selling YEN (buying USD/YEN) or being long, or adding to longs, in the UltraShort Yen ProShares (NYSE: YCS).
by Mike Paulenoff, www.MPTrader.com
Be alerted when Mike posts an article
For the last couple sessions the dollar has been unable to sustain beneath 90.00, which also happens to coincide with the flattening 50 EMA at 90.16. The ability of the USD/YEN to consolidate at or above 90.00 is a very positive technical sign within the larger basing pattern that started during Q4 2009. From a nearer-term perspective, now that the USD/YEN has climbed above yesterday's high at 90.68, the price structure should follow-through towards a confrontation with key medium-term resistance at 91.60/90 -- ahead of a potentially explosive upside breakout for the dollar (much lower Yen for a change). The technical situation is telling me to add to our long model portfolio position in the YCS in the upcoming hours.
