This pair has run hard. Given that major indices around the world are looking particularly heavy, risk aversion should be at the forefront of traders minds. It seems likely that this is an area for a significant pullback into the 159.20 handle, according to my EQT support and resistance system. I wont be shorting this pair considering how strong it's been and the carry you're gonna have to eat.. there's probably more value in shorting USDJPY @ 120/125 (but that's another chart)
I will however be looking to add major long positions in the 160 area and progressively as we go for a multi year bull market which I project to reach culmination in the 247.50 area.. possibly even more, given the steep nature of this trend line. As we know markets often have the tendency to overshoot!
My view remains the same, remember I said I won't be shorting this pair because of the strong uptrend and I won't be buying at these leves either. There are too many indications across various markets that risk aversion could take place. 160 remains my buy level but I might adjust if we move sideways over the coming months
AgentSmith
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Oh and I forgot to add that I do have a short usdjpy position around 125 as the negative carry is much easier to handle. Looking for 105. But again, the key is to be flexible, it's still looking strong, I might cut my position and stand on the sidelines for a while