FXWW News/JPY crosses/Technical Analysis/Trade Ideas/USD/JPY

Yen outlook: Expecting Yen to weaken when EM crisis recedes

  • USD/JPY is still trading in a consolidative wedge pattern suggesting the next impulsive move will be higher;
  • Yen crosses have been heavily sold on risk-aversion emanating from EMs;
  • Once this alleviates, I’d expect profit-taking to re-surface;

I favour being short the Yen at or near to current levels. USD/JPY should now find support at 97.20/30 and AUD/JPY has very strong technical support at 86.25/40.

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