USD/JPY: Longs getting very nervous; safer to sell intraday rallies
Despite the best efforts of the BOJ, the market is simply overly long of USD/JPY still. It has risen 10 big figures on verbal intervention and now that something actually has happened, it starts to drift off. That’s FX market logic for you.
I think that selling any rallies back to 89.50 looks like a logical play but keep positions smaller than usual as it will remain whippy. My target is 87.80/00 area and if we get a bounce out of there then I will buy USD/CHF (that’s FX and Irish logic mixed 🙂 ).