USDJPY waiting for price action
Updated
Currently, the USDJPY is trapped between a previous day's high and a recent day's low.
Until we break out of this range there is little to do.
Yesterday's target was not the rebalancing of the previous 3 days' action but the high from the 13th. If we get a break below this level, I'll have to look for a short down to 132.50
The DXY higher time frame chart shows that there is a higher probability of a move below 100, so this would help drag the USDJPY lower. The main reason for the move though is the market participants' expectations of a change in monetary policy from the BoJ. If they were to tighten in any way, the Yen would blast higher and the USDJPY would crash.
The GBPJPY is under Monday's low and if this holds Tuesday's momentum may carry on to the downside.
The big outside on the EURJPY also looks very bearish
My only thoughts left on the GBPJPY are that there are two distinct levels of perceived resistance where there will be a lot of stops resting.
these higher levels will at some point be a massive target, and formed the basis of my previous days thoughts on the market direction.
Once again, the USDJPY will drag these EURJPY and GBPJPY pairs around, so I am having to be patient.
Until we break out of this range there is little to do.
Yesterday's target was not the rebalancing of the previous 3 days' action but the high from the 13th. If we get a break below this level, I'll have to look for a short down to 132.50
The DXY higher time frame chart shows that there is a higher probability of a move below 100, so this would help drag the USDJPY lower. The main reason for the move though is the market participants' expectations of a change in monetary policy from the BoJ. If they were to tighten in any way, the Yen would blast higher and the USDJPY would crash.
The GBPJPY is under Monday's low and if this holds Tuesday's momentum may carry on to the downside.
The big outside on the EURJPY also looks very bearish
My only thoughts left on the GBPJPY are that there are two distinct levels of perceived resistance where there will be a lot of stops resting.
Once again, the USDJPY will drag these EURJPY and GBPJPY pairs around, so I am having to be patient.
Note
BoJ monetary policy is staying the same for now, market dropped the yen.Trade closed manually
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