Simple as chips, flows out of the dollar into the yen.. Dollar weakness in general usually helps the yen. Additionally the Yen is looking at potential further while all signs point to no FED interest rate hike this year. Surprisingly good CPI print for the USD did little to help it and the orange lines represent the ADR high and low on 15/10
I have been eyeing a short back down to 116 for some time now and believe it is close. Price amid the CPI release rejected off the adr low and wicked the 23.6 fib. I expect further rally to the current ADR high at least and possibly to the 38 fib. After this I am looking for a drop down to test the 23 fib again. I would love to see a move to 116.049 straight away but its never that simple. I expect the pair to trade in a range between the 38 and 23 fib and squeeze lower and lower awaiting a catalsyt to take it down below 118s..
These views could be rubbish but they are my own.. I am not an expert so take this with a pinch of salt. It is not advice or a "signal".