JYH10 – March Yen (Last:1.1005)

The daily chart is persuasively bearish, having tripped a conventional short entry on Friday at 1.1028. Moreover, and adding to a picture of short-term weakness, is the fact that no rally since then has exceeded any prior peaks even on the lowly 5-minute chart.  So how do we get short with the least amount of risk? My suggestion would be to wait until the futures break below the 1.1031  midpoint support shown in the chart.  Thereafter, you should look on the 1- and 3-minute charts either for entry with-the-trend at Lindsay’s point ‘X’; or at the ‘p’ midpoint or ‘d’ target of a minor retracement rally. I’ve sketched the first idea in the accompanying chart. ______ UPDATE (10:15 a.m. EST):  The chart foretold this morning’s price action almost exactly, and the hypothetical trade illustrated would have been a solid winner.  The CME shows a plunge moments ago to 1.0968 that could be a misprint, but in any event, the futures appeared to have traded down to at least 1.0995 after tripping a short-entry signal at 1.1021. (3-min chart, A=1.1041, B=1.1005, and C=1.1030).