Yen pairs are once again under the cosh as the trend continues
Talk on the street of a sovereign name selling USDJPY through 108.30-50 and that’s filtered through the market vine. Bingo, we’re now testing the next barrier support at 108.00
Ryan and I have both warned of on-going declines this morning so I hope that’s helped make you a few pips.
Currently 108.16 from 108.02. If/when 108.00 pops then expect more stops through to 107.80 with another barrier at 107.50 as per the order boards.
A triple whammy of lack of BOJ easing further, yen repatriation by Japanese companies to balance books/shore up defences and lack of urgency from Fed to raise rates all combining to make this perfect storm. Add to that a market heavily caught short of yen and having to bail.
Yes there will be decent risk/reward to go long at some point but I repeat that we have a little way to go yet. I’m sure some of the longer term traders out there are already regarding this as bargain basement though but I can still see cheaper buying opportunities.