FXWW News/Trade Ideas/USD/JPY

USD/JPY: Very difficult to trade, wait for big swings

USD/JPY is brutally hard to trade at the moment and best left alone in my view, unless of course you have the magic timing happening. The fundamental set-up looks bullish with rising US rates, tapering QE by the Fed, and Japanese expansionist monetary policy. But, the market is long and if risk sentiment turns sour again then the JPY will strengthen across the board.

I think its a case of sitting and waiting for some obvious risk-reward trades and I simply don’t see any at the moment.

  1. Hi Sean. To me looks quite tired at current level and if it’s to have a healthy run to 100 needs to correct lower. 98.70 seems a good short term top and is diverging with the top at 99.30. A correction could run until lower 96. Another one with potential to correct is USDCAD, do you have any info on it ? All this usd bullish sentiment is stretched at least short term and corrections are likely. Have a great week ahead !

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