Dollar-yen and Nikkei stock prices: Can they stage this year's biggest rebound? The market faces a sharp reversal from an oversold signal (danger).

The dollar/yen pair had been testing a nearby low in the early part of last week, but by the weekend it turned into a sharp rebound market.
The USD/JPY was in a quite oversold state, so
the add-on easing observations reported by some news agencies over the weekend acted as a trigger, causing a short-covering move close to 112 yen.

Next week, the FOMC and the Bank of Japan meetings will be the main events, but in the domestic market,
the market has already recovered on expectations of BoJ additional measures, so pushing for further gains will likely require a surprise.

In the Nikkei stock average, around 18,000, and for USD/JPY around the 112 yen level seem to be in focus,
but perhaps this could be the biggest rebound of the year.

However, it is worth noting that the Dow Jones has been recovering and
I think the timing for resuming selling may be near, so
if the domestic market is swayed by external factors, the rebound may gradually
stagnate and stall.

Now, in the previous article I introduced Ask Ultimate MAX; a new program displays oversold and overbought in two stages, and it is actively working! Previously, because the weekly chart showed oversold (danger) lighting up, I nearly liquidated the long USD/JPY position, but after watching the subsequent movement, USD/JPY rebounded strongly from the 106 yen area to nearly 112 yen.


Previous article
https://fx-on.com/news/detail/?id=10789&c=1
Also, crude oil and the Nikkei 225 rebounded significantly after oversold (danger) signals appeared on daily and weekly charts.
In particular, crude oil had an oversold (danger) signal on the monthly chart, so I tried a contrarian test by holding a long position in January as a trial.



I had saved charts for the oversold (danger) signals, but the hard drive failed during the Kumamoto earthquake, so I am explaining now with the current charts only.
The current crude oil market is in a downtrend, but when markets become overbought or oversold, they tend to snap back. The program now detects such overextended market moves.
Of course, since it is a downtrend, if you hold a short position, you should consider closing it at times.



Last week, I skipped the weekly article, but

one week has passed since the Kumamoto earthquake, and the situation of aftershocks has finally calmed down somewhat.

It will still be tough going forward, but with the spirit of “ganbaru ken” (I’ll do my best), I plan to continue living here in Kumamoto.


Before last week's major earthquake, I upgraded Ask Ultimate MAX with a system update.
Continuing with multi-frame analysis, additional oversold/overbought signs indicating market skew were added,
and the program now displays targets for taking profits.

Furthermore, there has been a very high number of inquiries about USD/JPY, so we prepared the Ultimate MAX USD/JPY edition.
If purchased together with Ask ver1.0, for a limited time you can get the MAX USD/JPY edition almost at 20% OFF, effectively making it free.
The price makes it possible to obtain the MAX USD/JPY edition at no cost.

Additionally, we prepared a luxurious eight-item bonus set and a limited-time, value-packed USD/JPY bundle edition.

Ask ver1.0 / Ask_Ultimate MAX USD/JPY edition + eight-item bonus set!The ultimate version for traders who love USD/JPY!



We have many posts about Ask ver1.0 and the new product Ask_Ultimate MAX indicators on the blog as well.