USD/JPY: Selling rallies towards 101.00 preferred
- Prime brokers report that short-term speculators are building long positions around 100.00.
- The Yen crosses remain reasonably well supported but macro players are eyeing big levels like 95.50 in AUD/JPY and 129.00 in EUR/JPY.
- Ranges expected to hold ahead of Friday’s NFP.
Personally I feel that a 300 pip dip after a 30 big figure rally is not yet a ‘dip’ and I prefer to sell rallies for a test of China’s dnt base (if it’s still live that is) at 97.00. I have solid short-term resistance coming in at 101.05/10 and that’s where I’m hoping to increase my risk.
Hi Sean, Where would you be looking to place your stop if the 101.00/15 level is reached? The break of the the big 100 figure is certainly encouraging and it does seem due for some sort of correction towards 96.50/97.00. However, I’m also wary that if it gets too far above 101.30/40, I may need to pay a little bit more respect to the ascending trend-line from November.
Agree Peter, so I’m thinking tightish stop above 10160