USD/JPY weakness affects all other major pairs
I think they are called ‘no-brainer’ trades for a good reason and yesterday morning’s open near the previous pivot and 50% retracement (see chart) in USD/JPY offered exactly such an opportunity. I didn’t expect a 300 pip fall from there but obviously the market got caught long again. The correlation between US interest rates and USD/JPY is being totally obliterated and once all this cross-action dies down, I think we may enter an extended period of USD weakness.
Timing as we know is all that matters in the FX market but anyone waiting for very sharp dips in cable may well be disappointed, whilst I’m also firmly of the opinion that the AUD/USD market is too overwhelmingly biased in one direction ie bearish, and an overdue correction will soon happen there as well.
Good luck today.