Long USDJPY - Anticipating continue strengthening US
I expected USDJPY continue to drift upward today. Yesterday FOMC statement and Yellen's speech certainly helped a lot. Today is BOJ's turn and I really don't think they will reverse anything as their 2% inflation target is just still too far away. Actually since USDJPY strengthening, it helped push them toward their goal a bit closer and I think they will be more than happy to add to the fire by hinting a neutral to further QE from their side of the trade.
Sentiment wise, it's gonna be a bit hard to grasp as this is a tentative event. Nevertheless, from the Retail's positioning USD is net Long vs JPY mixed. In my opinion, this time the USDJPY is "under-longed". People should more bullish on this pair given the fundamental lined up and the Carry Trade potential.
I'm long 1/2 position now and gonna go long another 1/2 if price retrace to the Open at 112.2. My SL is 111.9 and TP is 113.4.
Sentiment wise, it's gonna be a bit hard to grasp as this is a tentative event. Nevertheless, from the Retail's positioning USD is net Long vs JPY mixed. In my opinion, this time the USDJPY is "under-longed". People should more bullish on this pair given the fundamental lined up and the Carry Trade potential.
I'm long 1/2 position now and gonna go long another 1/2 if price retrace to the Open at 112.2. My SL is 111.9 and TP is 113.4.
Note
Dual comments from Trump and then North Korea boosted JPY today and I was taken out.Not that I don't expect such risk can emerge, but I was not able to monitor it properly. Wish I had an Aussie partner who can keep tab on the market, waking up at 4AM is very painful for me.
The move is a bit overblown in my opinion. The NK already announce they are gonna test the bomb so if they do test it either today or over weekend, nothing to be surprised about, I'll be looking for a better entry to Long USDJPY again.
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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.