USDJPY Headed lower? The case for Japan to thrive
First off, I am NOT a Forex trader or highly in tune with the intricacies of the forex market. However, I am a Chartist and I see what I see.
The USDJPY is in a current short term down trend, posting Lower lows and lower highs. With the CPI data coming tomorrow for the US Economy I would suspect some significant movement to start tomorrow and not end for a few weeks at least. The China Yuan trading BLOC is becoming a larger problem for the USD every day. At some point Japan has to survive and we might see their choice to adapt to the current climate of world finance begin to help their currency decouple from its standard trading range channel that its been comfortable in for decades. Japan is positioned well in all things except agriculture and typically that would be where the USA would come to the table for trade talks. Unfortunately the USA market for foreign automobiles is not what it used to be and China is looking anywhere it can to establish new trading deals. China could easily steal a good market share of our Japan agriculture trade without Japan fearing much retaliation from the USA in doing so. Japan has already signaled to the world that they will be comfortable pivoting a portion of their trade deals and currency settlements if need be.
That is the basis of my idea that the USDJPY is headed lower and towards a stronger JPY. I look for 131 in the immediate short term and 126 before we try any significant reversal if any at all.
This is just what i see and I am just documenting my own ideas for myself. DYOR.
The USDJPY is in a current short term down trend, posting Lower lows and lower highs. With the CPI data coming tomorrow for the US Economy I would suspect some significant movement to start tomorrow and not end for a few weeks at least. The China Yuan trading BLOC is becoming a larger problem for the USD every day. At some point Japan has to survive and we might see their choice to adapt to the current climate of world finance begin to help their currency decouple from its standard trading range channel that its been comfortable in for decades. Japan is positioned well in all things except agriculture and typically that would be where the USA would come to the table for trade talks. Unfortunately the USA market for foreign automobiles is not what it used to be and China is looking anywhere it can to establish new trading deals. China could easily steal a good market share of our Japan agriculture trade without Japan fearing much retaliation from the USA in doing so. Japan has already signaled to the world that they will be comfortable pivoting a portion of their trade deals and currency settlements if need be.
That is the basis of my idea that the USDJPY is headed lower and towards a stronger JPY. I look for 131 in the immediate short term and 126 before we try any significant reversal if any at all.
This is just what i see and I am just documenting my own ideas for myself. DYOR.