Our USDJPY bear swing paused about 300 pips ago and created a temporary bottom from which we took short term buys from
After a nice run of 200+ PIPS we are EXIT the shorts. Now USDJPY should resume its bear swing on the route to new lows. From a technical aspect this retracement has come up to retest the overall trend at the 38 Fib level. Normally I would be expecting a further correction, up to the 50 area but under these economic conditions I expect USDJPY to resume its bear trend at a much more aggresive rate than most trends. Right now the "Carry Trade" is about to work against the dollar, as outflows continue to pull USDJPY down. Make no mistake there is a LOOONG way for this pair to fall still.
We are emtering longs with stop losses above the recent "Lower high"
If for some reason the bullish momentum were to resume, I would still be looking to SELL USDJPY around the 50 fib or 134 area.
Theres not much to update on the fundamentals. The US economy is still heading towards recession faster than the FED RESERVE can control. Yen has a long way to go before it becomes "overvalued" in this environment currently. USDJPY sells will always be the safer option for the near term.
After a nice run of 200+ PIPS we are EXIT the shorts. Now USDJPY should resume its bear swing on the route to new lows. From a technical aspect this retracement has come up to retest the overall trend at the 38 Fib level. Normally I would be expecting a further correction, up to the 50 area but under these economic conditions I expect USDJPY to resume its bear trend at a much more aggresive rate than most trends. Right now the "Carry Trade" is about to work against the dollar, as outflows continue to pull USDJPY down. Make no mistake there is a LOOONG way for this pair to fall still.
We are emtering longs with stop losses above the recent "Lower high"
If for some reason the bullish momentum were to resume, I would still be looking to SELL USDJPY around the 50 fib or 134 area.
Theres not much to update on the fundamentals. The US economy is still heading towards recession faster than the FED RESERVE can control. Yen has a long way to go before it becomes "overvalued" in this environment currently. USDJPY sells will always be the safer option for the near term.
Comment:
USDJPY PRIME FOR A HUGE DROP YOU SAW IT HERE FIRST
USDJPY HAS RESPECTED OUR VIEW SINCE THEN