We see USDJPY trade in a range after losing rally momentum and hitting the ground at 116 level.
The selloff of USDJPY fundamentally is explained that investors strengthen to hold safe haven currency like Yen.
While Abenomic plans seems lost momentum too, BOJ need to do something to drive Japan out of another slowdown after gaining some positve factors.
Japan is also affected by China slowndown because it is main trade partner of Japan.
Two oposite factors:
- Demand for safe haven currency.
- Increase more stimulus.
Choosing a factor to trade is a tough matter I am thinking.
Tonight, the main focus is BOJ Meeting where we expect there is a significant change in Japanese Yen .
Will BOJ extend more stimulus ?. The answer will be on tonight.
- Technical Analysis
The range hold USDJPY is very tight.
is still not broken.
While traders buy U/J around 119 level when it reached this level.
If BOJ meeting provides something new, I think the range could be broken. Likely.
2 month sideway should finish tonight.
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