USDJPY has been in an uptrend for a very long time now. In fact, the uptrend started back in late 2011 - a very long time indeed. Currently we are experiencing a very risk off sentiment. When this occurs we see flows into the Yen and USD, however the flows into Yen are clearly overpowering the demand for USD in this pair. This is why we are currently seeing a flag structure. I would wholeheartedly expect for the pair to increase in value due to the divergence of the two economies, but for now, I would expect this flag structure to continue. A break above the upper trendline in the short term could see a retest of the 124.33 level whereas a break below could see a test of the 120.00 psychological level. I do not, however see the latter happening, unless we are due for a large correction, in which case the pair would fall further.
Form your own opinions.
This is not to be interpreted as investment advice.
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Form your own opinions.
This is not to be interpreted as investment advice.
Trading leveraged products carries a potentially high level of risk.
Losses may exceed deposits.
www.admiralmarkets.com