USD/JPY may drop some before it rise again

Note: USD/JPY is in uptrend, there is no doubt here. So, selling USD/JPY is risky.

The FED is raising rates and BOJ is still holding their negative rates. So, as a carry trading method JPY is much weaker than the USD.

And BOJ already says they are not going to raise rates anymore. Now the question may arise, WHY am I in sell mode in USD/JPY.

Reason is simple, Everything has a limit. I think USD/JPY has reached its limit. As long as it didn't break above the 135.30, it is not going to up more.

If you see its last few days moves. The USD became strong against most of the major currencies but couldn't against the JPY.

That means the current price zone matters to the investors. If you think my logic is not strong, please you can skip it...

I think after tomorrow's rate decision the USD will be weak. Because the market is priced at a 75 BP rate hike. But my mind says, the FED won't raise 75 BP. rather they will rise only 50 BP.