Japanese Yen futures plummet, generate a fresh sell signal

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Japanese Yen futures plunged to a seven-month low today (2/22) registering its fifth out of six trading sessions where it closed lower than it opened.

This move lower for March Japanese Yen futures generates a sell signal on the daily chart.  This is the first sell signal since the trend changed to the downside in mid-February.  Today's close also indicated that the Yen may be in a longer-term downtrend.  The Yen gave a sell signal two weeks ago on the weekly chart.  On the monthly chart the yen pierced and settled above a major support and if the Yen can close below this area it'll be a bearish indicator.

The Bank of Japan unexpectedly expanded its asset-purchase program on February 14^th and since then the Yen has dropped 3.7% since.  The Japanese Ministry of Finance commented that there is nothing strange in recent currency moves which may indicate they expect the Yen to slide even further and some traders believe the BOJ is once again be administering a stealth intervention.

In my opinion although the Yen is at oversold levels and there is a chance of a move upwards before the next leg down, I would put a portion of a short position on now in case there is no reatracement.

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