USDJPY - watch for short term downside
Good morning everyone,
Watch short term downside after reversal pattern started developing and fundamental backdrop is supportive of potential yen strength from - Bank of Japan just released a note saying the weakening of the yen as a result of its yield curve control policy is not desired. This could mean the target for rates could be lifted, thus lifting the yen as the rate differential to the US could shrink. Therefore, wait for small consolidation and consider going short USD/JPY. The first target is the round level @140, though it could happen quickly since positioning is very heavy on USD longs, that could in turn be squeezed.
If you have any questions, feel free to comment or get in touch.
Wish you all the best trades,
PTFX
Disclaimer: This post does not provide any kind of financial advice. It is for educational purposes only and solely supported by my understanding of the technical figure based on wave theory.
Watch short term downside after reversal pattern started developing and fundamental backdrop is supportive of potential yen strength from - Bank of Japan just released a note saying the weakening of the yen as a result of its yield curve control policy is not desired. This could mean the target for rates could be lifted, thus lifting the yen as the rate differential to the US could shrink. Therefore, wait for small consolidation and consider going short USD/JPY. The first target is the round level @140, though it could happen quickly since positioning is very heavy on USD longs, that could in turn be squeezed.
If you have any questions, feel free to comment or get in touch.
Wish you all the best trades,
PTFX
Disclaimer: This post does not provide any kind of financial advice. It is for educational purposes only and solely supported by my understanding of the technical figure based on wave theory.
Trade closed: target reached:
Although the trade didn't go on its first attempt, I was out for breakeven and shorted again with entry order. The first target was reached and I would not exclude a retest of the top after the latest news.