USDJPY: My next 2 moves as I expect BoJ to defend their currency
I'm expecting USDJPY to carry on meandering towards the 150 mark, and it's at this level that we've previously seen BoJ step in to defend their currency,
We saw the same in June / July 2022, and I think we'll see it again.
BoJ has started hinting at a change to monetary policy for the first time in a long time, we saw a very small reaction in the past week to this, but right now the dollar is too strong for this to have made a difference.
I'm expecting DXY to retrace from current levels and this cross could be a big beneficiary if BoJ do what I think, it's always good to trade strength against weakness.
There could well be some little long scalp opportunities for me (with very very tight SL's moving to BE asap) on the way up to 150 (within the rising wedge) as that's still some good pips away, but for me the bigger moves now will be to the downside.
I'm not planning on getting caught with any longs up here...
This is a big news week for this pair with FOMC on Wednesday and BoJ interest rate decision and conference Friday, will be interesting to see how this all pans out ahead of these fundamentals, but beyond them I'm expecting things to play out as per this idea.
I've plotted two moves, first from the 150 ish mark down to support, and then another sell down to the rising long term trendline.
We saw the same in June / July 2022, and I think we'll see it again.
BoJ has started hinting at a change to monetary policy for the first time in a long time, we saw a very small reaction in the past week to this, but right now the dollar is too strong for this to have made a difference.
I'm expecting DXY to retrace from current levels and this cross could be a big beneficiary if BoJ do what I think, it's always good to trade strength against weakness.
There could well be some little long scalp opportunities for me (with very very tight SL's moving to BE asap) on the way up to 150 (within the rising wedge) as that's still some good pips away, but for me the bigger moves now will be to the downside.
I'm not planning on getting caught with any longs up here...
This is a big news week for this pair with FOMC on Wednesday and BoJ interest rate decision and conference Friday, will be interesting to see how this all pans out ahead of these fundamentals, but beyond them I'm expecting things to play out as per this idea.
I've plotted two moves, first from the 150 ish mark down to support, and then another sell down to the rising long term trendline.
Comment:
Playing out as expected, retest in progress, if it fails I'm in short
