USDJPY has completed it's retracement on the Monthly Chart and formed a continuation pattern that is closing in on the breakout point. If I were deep into a short position, I would consider tabling some profits or cutting my losses. I have begun looking at the lower timeframes to find a good entry point and I believe that I will begin accumulating my position at a break above 111.000. It is possible that there will be some further downside before this happens, however I believe the longer term chart shows my analysis that the upward continuation is imminent. It could come down to 109.80 or so before that happens, but long term it should go up.
The question here is not how well the dollar is doing, the question is: Is the dollar doing better than the Yen in the long term. My answer is check interest rates, as long as the US interest rate (positive 1.25%) is higher
than Japan's (negative -.1%) , then Yen will flow into dollars to protect Japans BIG MONEY. If you could protect your savings from a negative interest rate, what would you do? So as long as the Fed doesn't do anything
drastic , the Dollar is going to recover it's short term fall against most of the currencies, or at best hold position for a while building up strength. Against the Yen the DXY only has to hold it's position and not slip further for my
analysis to bear out.
This is a long term trade and I expect the pair to challenge the 125 highs from June of 2015 within the next 6-12 months.
Again this is LONG TERM outlook, I may take a short term(sell) trade if I think the pair weakens enough to test the 109.80 area.
The question here is not how well the dollar is doing, the question is: Is the dollar doing better than the Yen in the long term. My answer is check interest rates, as long as the US interest rate (positive 1.25%) is higher
than Japan's (negative -.1%) , then Yen will flow into dollars to protect Japans BIG MONEY. If you could protect your savings from a negative interest rate, what would you do? So as long as the Fed doesn't do anything
drastic , the Dollar is going to recover it's short term fall against most of the currencies, or at best hold position for a while building up strength. Against the Yen the DXY only has to hold it's position and not slip further for my
analysis to bear out.
This is a long term trade and I expect the pair to challenge the 125 highs from June of 2015 within the next 6-12 months.
Again this is LONG TERM outlook, I may take a short term(sell) trade if I think the pair weakens enough to test the 109.80 area.