Japanese Yen Futures (CME.JY) dropped an 'extra big' 2.6% on Friday after rallying on each of the four previous days of the week. JY closed the session at 94.15. This may be a good time to buy the dip, according to history.
Q: How has CME.JY performed in the past when, during the third quarter, it declines on Friday after rallying on all of the four previous days of the week?
A: According to the nine previous occurrences of this event, EventEdge indicates that CME.JY has shown a somewhat bullish edge that peaks eight trading days after the event. Thus, the projected date for the peak of the bullish edge relative to the current event date (Friday, Sept. 19, 2008) is Wednesday, Oct. 1, 2008.
CME.JY rallies in 78% of the cases (7 of 9) by an average of 2.3% relative to the close on the event date. The average of the two declines is 0.6%. The overall return of the 9 cases is 1.7%, which, based on the close of CME.JY on the event date (94.15), provides a target price of 95.75.
To view this idea in our EventEdge® analysis tool click here.
Ronish Patel is an analyst with MarketHistory.com.
