USDJPY Lower
I like USDJPY Lower from around here if we hit the entry point.
From a technical perspective JPY is currently performing very well compared to the other currencies - in particular for USDJPY we are close to moving back below the price before US CPI on Friday while the other USD pairs have continued to move in the direction of a strong USD. I think if we move below this level it indicates that JPY is focused on something else. Stop above the high here makes sense and i believe looking at the moving averages we are coming out of this strong uptrend.
From what i've been reading over Friday and today a lot of people are concerned about JPY officials being worried about the level of weakness in JPY currently as it raises inflation for the economy. This could take affect again and cause the BoJ to become more hawkish which would likely cause a big move lower in USDJPY.
Sentiment and positioning metrics for USDJPY look extremely high currently which is another warning sign.
I've also highlighted on the chart that the other cross JPY pairs have started their move down which gives me more confidence that we move lower in USDJPY.
We have the BoJ meeting this week which should give us a signal to move lower or to move higher so will likely find out then.
Not trading/investment advise, feedback welcome!
From a technical perspective JPY is currently performing very well compared to the other currencies - in particular for USDJPY we are close to moving back below the price before US CPI on Friday while the other USD pairs have continued to move in the direction of a strong USD. I think if we move below this level it indicates that JPY is focused on something else. Stop above the high here makes sense and i believe looking at the moving averages we are coming out of this strong uptrend.
From what i've been reading over Friday and today a lot of people are concerned about JPY officials being worried about the level of weakness in JPY currently as it raises inflation for the economy. This could take affect again and cause the BoJ to become more hawkish which would likely cause a big move lower in USDJPY.
Sentiment and positioning metrics for USDJPY look extremely high currently which is another warning sign.
I've also highlighted on the chart that the other cross JPY pairs have started their move down which gives me more confidence that we move lower in USDJPY.
We have the BoJ meeting this week which should give us a signal to move lower or to move higher so will likely find out then.
Not trading/investment advise, feedback welcome!
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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.