The YEN Presses Lower in Reaction to FinMin Jawboning, But The Dominant Trend Remains UP

The USD has climbed 3.3% vs. the YEN since last Tuesday multi-month low at 105.50 off of the June 2015 multi-year high at 125.85.

While the upmove in the USD (downmove in YEN) appears dramatic, let's notice that USD/YEN remains in the grasp of a powerful stair-step downtrend that will not be violated or neutralized unless and until it climbs and sustains above 119.20.

At the moment, my trend, moving average, and momentum work all argue that current USD/YEN strength (YEN weak- ness) represents an oversold recovery rally prior to another downleg that presses USD/YEN to par.

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