My thoughts on UJ are based on the fundamentals that moved the market to the downside (Evergrande, The China Real-estate Giant). Even though the Dollar and CHF are typical "safe havens" during perilous times...Not even the good ole green back can stand-up forever against this 310 Billion dollar Default. The technicals signaled the sell 2 weeks ago with a shooting star and now its finally time to pay the piper. Like GJ we should see a shallow sell for about 30 pips to make the double bottom then the games begin with the move to the upside for 85 pips give or take. The the crown jewel of the week will be the sell off of 250 pips or so. This move to the downside may start earlier in the week than some of the other JPY pairs. Remember...although I am biased for the sell, I CANNOT control the day and time that it will start selling off. I expect a liquidity grab at the 113.50 -113.75 area before the move to the downside.
Manage your risk and trade WITH the trend.
Manage your risk and trade WITH the trend.