I’m focusing on USD/JPY because we now are at a point where the market needs to make a decision (for this pair) on where it see’s JPY moving to over the next 12 months.
We smashed through four (4) key levels that I predicted would have resulted in a minimum 500 pips down to 110.050 (price bounced of 110.97).
Since then, price has rallied back, and it looks like we are going to retreat to the range of 115.186 – 114.81.
(1) If price breaks the four (4) key levels (see chart), then we are going to the moon (+125)
(2) If price rejects this level, then I’m confident price will retrace back to 110. However, If price falls (JPY appreciates), then Karuda and his cronies might intervene.
I feel more confident in buying USD/JPY if price breaks the four (4) key levels (see chart) then selling if it rejects the 115.186 – 114.81 range because of how the market may react to more by the BOJ (and others).