Technically the Mar'10 JAPANESE YEN contract is in a BULL TREND ACCELERATION posture after producing a big positive signal. The MKT should "run" to a new level if the signal is valid.
Key off the 11305 Inflection Pivot for a guide to the session sentiment.
On the SELL side REVERSAL strategies can be executed at the 11494 and 11588 resistance extremes following an exhaustive signal. Expectations should be for an immediate exhaustive turn with the MKT quickly moving away from the area. A gradual decline following a reversal signal and it is more likely just a pause before another round of buying, so lock in any unrealized gains. SELL FADE strategies at 11368 potential but wait for repeated tests, with the best opportunity not violating the resistance level. Consider rolling long on any stops with this strategy. SELL BREAKOUT strategies below 11242 are aggressive, with a better opportunity a FADE against the 11305 Infelction Pivot after a breakdown signal.
On the BUY side accept FADE, REVERSAL and BREAKOUT strategies above the 11179-11164 support area. BREAKOUT strategies above 11368 early in the session may have issues holding structure, so respect any break in momentum. BUY FADE strategies off 11242 are recommended over REVERSAL strategies as the MKT is expected to hold higher structure and any failure should be considered a potential negative corrective shift. The MKT is aggressively bid which should keep pace throughout the session if the TREND ACCELERATION forecast is going to play out.
Note: The worst-case scenario for a MKT in this technical position is to go higher early in the session and then break all day. Be alert and recognize this. If you have > 3 loser long trades, consider taking the next sell signal, anticipating a corrective turn. Remember in this technical position if the MKT is going higher, it should just go. If not, there is the potential for a corrective break or digestive trading environment.
Good Trading.
JS
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