USDJPY - Risk Off Pure Play Trade (Missed Opportunity)
There is not much news coming out of JPY so I kind of ignore the currency coming into the week. However early Monday, with the Korea missile launch I knew JPY should be bought but did not take much action. In this case, the best risk-off play is to pair JPY with a risk currency that is expected to be weak (in this case USD as AUD, CAD, EUR is expected to have major news in the week, NZD is similar neutral).
Technical levels pulled back near to 110 for USDJPY was obvious and the risk-reward very good. Of course over the course of the week USD became even weaker with 3 Fed members spoke dovishly, I could have had a free run toward the Pivot of 1.0927. Also the sudden dovish talk starting by Brainard was somewhat surprise in my opinion as she was Neutral in her previous speech, provides us with another entry as price even pulled back after the 109.27 level. USDJPY continue to weaken toward the next Pivot of 108.7 and only to pause as "buy the fact" unfolding after Kashkari and Kaplan's speech.
Technical levels pulled back near to 110 for USDJPY was obvious and the risk-reward very good. Of course over the course of the week USD became even weaker with 3 Fed members spoke dovishly, I could have had a free run toward the Pivot of 1.0927. Also the sudden dovish talk starting by Brainard was somewhat surprise in my opinion as she was Neutral in her previous speech, provides us with another entry as price even pulled back after the 109.27 level. USDJPY continue to weaken toward the next Pivot of 108.7 and only to pause as "buy the fact" unfolding after Kashkari and Kaplan's speech.