It is chicken and egg time for US dollar
. Dollar gets weaker and USD/JPY
goes lower and dollar start falling. Will it end at 105? Not sure. At 100? may be. It's futile to analyze or predict where it is going to end. Even BOJ might be clueless about that ;) So for uninitiated central bank
intervention traders, warning sign says - Don't try to trade Yen pairs with your fancy technical analysis
because it will not work for coming sessions. USDJPY
can keep on falling taking all kind of supports or it can bounce viciously on either rumored or real intervention from BOJ and render any resistance useless. Key level was 111 and not 110. Because if BOJ was resolved to defend 110 then they need to defend 111 and that's the reason we mentioned earlier to play 111 - 114 range. As it happened with SNB, 1.20 is not the level you play with but 1.21 or 1.22. Because if you are trading 1.20 then you are too close to the fire. Anyway, let's excommunicate Yen pairs for a while and concentrate on other majors.
Most probably, UDSJPY will keep driving dollar lower and keep the dollar bullish
sentiments at bay. We are looking to trade following levels.
- 1.1400 is the key for the Euro
to keep floating. If that goes then we will be looking at 1.1340 again.
- Pound has its own Brexit tantrums at time and 'Handle with Care' written everywhere on chart. Broad range of 1.40 - 1.45. Today we are buying with 1.41 support.
- First interesting level is 0.7560 followed by 0.7540.
- It can't afford to lose 0.6800, so let's see!
These are the levels we will be putting our orders against and try to get few pips. Yes dollar is getting whacked but still caution is advised in chasing any moves because we have seen that it reverses as fast too. Leaning against good levels will ensure profits if we are right and in case of reversal, it ensures safe escape.