Give USD/JPY a Christmas short package Hello fellow traders,
Technical point of view:
USD/JPY seems to be struggled to pass-over the 115.xxx handle again, but constantly met its rejection at around 114.7xx level. By losing that 114.7xx handle, USD/JPY has been forming its lower highs at 113.7xx recently and did make a swing low from that peak to 112.000. That whole swing ups and downs in a downward direction referring to its mentioned high at 114.7xx has formed a head and shoulders formation.
Fundamental point of view:
US tax reformation by Trump's administration has been passed by the Senat recently and tomorrow we have the rate decision event by the BoJ. A rate change by hiking it seems to be not to happen this year, although the interest rate for JPY is still located in the negative territory and BoJ still keeps its QE policy unchanged, for the 2% inflation target has not been reached yet. Those facts are clear for the markets since long time and it cannot make a further surprice. Due to these, we can recognize a chart pattern as mentioned above, in which a lower high still forming.
The positive side of the US tax reform has not shown yet and its needs time to develop within the US economical system for a certain estimation whether it is good or bad idea/policy. Until that time, the markets will be in a uncertain situation so that a upward momentum for the greenback is likely not be being happened until March 2018.
Conclusion:
Good to give USD/JPY a sell limits at the mentioned levels. Take your look at the depicted chart for more reference.
Trade well!
m2m
