USD/JPY outlook: 96/99 consolidation with bullish bias

  • USD/JPY looks and feels bullish but we’ve read this book before;
  • Charts show wedge consolidation between 96/99 (see chart) with an eventual bullish break favoured;
  • Diverging CB policies is very bullish for USD/JPY;
  • Soft risk sentiment is weighing on the Yen crosses, hence the current impasse.
  • On the day, buying dips towards 97.30/35 looks like best play.
  1. Hey Sean, well, it was raining pips today for me (Thank God), i went long at 97.1 yesterday ( im from Canada its still the 21st here) and closed it today making 80 pips then went short from there and made 20 pips there! Thanks for the advice yesterday, i placed orders and waited for the market to reach my level to enter the trade instead of jumping in early.

    As for this pair, Sean i see the nikkei going to 13500 today possibly, but thereafter going much lower, or if the market sentiment worsens it might just go straight down even without reaching 13500, taking the usd/jpy with it, but i too am starting to become bullish, and cant see this pair going below 96, and it will probably reach 96, if it ever does, when the Nikkei hits 12500 again. Still Sean i must ask, isnt it to early for a bullish stance. I know the market is waiting for this move, and so am I, but, today when 98 could not be broken even after the fomc i rechecked everything and figured we might get up to 98.3 area today but then should go back down to the 97 range.

    My question is now after reading your post, should i too go long once we approach the 97.3 range, or wait? I want to go long, but theres so much chatter in the market about a possible dip way below 96 which has me on edge. Any guidence will be appreciated! And sorry for the long post.

  2. Play the ranges like you’ve been doing so well. The FX market trades basically sideways for the vast majority of the time, so I’d believe the 96/99 range until proven wrong

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