Flows and Orders/FXWW News/JPY crosses/Technical Analysis/Trade Ideas

USD/JPY: Dead-heat in race to the bottom

  • The market doesn’t like either currency at the moment and broad sideways trading is very likely to continue between 95.50/101.50 (see chart);
  • My bias is tending towards slightly bullish given how strong momentum is developing in some of the crosses, EUR/JPY in particular;
  • Positioning is the great unknown here but we’ve seen little evidence to suggest that the big leveraged accounts are likely to blink any-time soon so I guess there’s no point in trying to anticipate that;
  • We may get a quick burst of profit taking in the Yen crosses once Tokyo opens, but any dips to 134.70 in EUR/JPY or 94.70 in AUD/JPY certainly look like buying opportunities.
  1. Morning Sean,Well I don’t know what to do with this pair, like everybody else, but this weeks calendar thank God has some interesting events lined up so sooner or later we will start moving again. My Question is actually about today’s Post-NFP release price action, The pair Dropped to 97.87on the NFP release, but why did we go back up to 98.44 so quickly, I understand sp500 and friends went up, but the usd index was DOWN, so I was wondering if you had any ideas or clues?

  2. Hi Sean, don’t know if this sounds right, but AUDJPY broke above IHS neckline around 95, so the target would be 100? Or is the IHS pattern on daily chart not quite credible?

    1. Thanks for the Info Sean, We live and We learn! Will keep that in mind for next time! Thanks to your advice a couple of Months ago, I closed all my trades Post-NFP and just Observed instead of Risking! And guess what, I was thinking of taking a Small Long because of all the talk that was going on about a Higher Number above 180, but I just waited it Out, Thank God for that!

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