USDJPY Higher
little risky but trying USDJPY higher here.
Most people are expecting the BoJ to raise the 10 year yield cap tomorrow as they believe the initial raise was a floodgate opening to more easing of policy. I think that there won't be any change tomorrow, from what i can see Kuroda wasn't too keen on the first change so i think it is unlikely that he will raise the yields cap again on the next meeting tomorrow. I doubt that Kuroda will want to rock the boat too much before he leaves but i could be wrong.
Positioning and sentiment for USDJPY are extremely low, which i think will lead to a strong move higher is Kuroda doesn't match the markets expectations.
placing the idea now as there could be some short covering going into the event as there is a lot of positioning to the downside for the pair currently.
stop is somewhat over 1 ATR away in case we see some downward movement tomorrow.
Not trading/investment advise, feedback welcome!
Most people are expecting the BoJ to raise the 10 year yield cap tomorrow as they believe the initial raise was a floodgate opening to more easing of policy. I think that there won't be any change tomorrow, from what i can see Kuroda wasn't too keen on the first change so i think it is unlikely that he will raise the yields cap again on the next meeting tomorrow. I doubt that Kuroda will want to rock the boat too much before he leaves but i could be wrong.
Positioning and sentiment for USDJPY are extremely low, which i think will lead to a strong move higher is Kuroda doesn't match the markets expectations.
placing the idea now as there could be some short covering going into the event as there is a lot of positioning to the downside for the pair currently.
stop is somewhat over 1 ATR away in case we see some downward movement tomorrow.
Not trading/investment advise, feedback welcome!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.