USD/JPY: Could be back at 90 in a few weeks time
This pair looks really really dangerous to me, just have a look at the weekly chart and its vertical rise from below 80.00; a 38.2% retracement would only have it back at 93.50! The Nikkei looks susceptible to further falls and price action suggests that if it does fall then it will be fast. The Yen crosses have been looking wobbly for a few days now and I think a break below 129.00 in EUR/JPY could set off some serious selling. PM Abe said nothing to encourage the Japanese bears and with NFP due tomorrow, we might see some long-term positions start to book profit.
I’m running a small short position here and hoping desperately for an intraday bounce to add some more. I’ve been wrong plenty of times before but something smells ‘off’ in USD/JPY.