USD/JPY: Going to keep stopping everyone out
The market is very bullish USD/JPY but the market is also quite long USD/JPY! Risk averse sentiment returns on a semi-regular basis and this sends the Yen crosses tumbling at unexpected times, just like we saw with EUR/JPY in early European trade yesterday. I’m leaving USD/JPY alone as I think it will keep stopping out both the bulls and the bears and I’d trade it with a very short-term bias, jumping onto moves just as they look likely to be starting.
A strong view in USD/JPY could be an expensive indulgence in coming weeks!
I’d hazard a guess at a 97/101 range in coming days which suggests that selling rallies from current levels is the preferred strategy.