USD/JPY: Opens higher amid heavy turnover
- Nikkei expected to open higher today;
- Chinese trade data supports the ‘risk’ trades;
- Market already long from last week so many stale longs happy to sell into this morning’s strength;
- Prices need to break above last week’s 100.20 highs in order to rejuvenate bullish momentum;
- Crosses like AUD/JPY and GBP/JPY still look bullish.
Conclusion: I still prefer the buy-big-dip strategy but we need to pick our levels carefully. I don’t fancy being caught long near 100 just as happened to many on Friday when we got the big clean-out to 98.00. Be patient and buy dips is my view, or bears can try selling intraday rallies to 100.00 with tight stops above 100.30.