USDJPY

The DXY has dropped the last day or two - all I hear are comments such as "DXY Melting" if you look at the DXY level it's dropped from around 100.40 down to around 99.40 - hardly melting, there's a clear structure just below the current level if it gets to that level. Expecting a turnaround and back to the higher structure. That pushes up USDJPY longer term,

The JPY COT is pretty flat this week - giving us around 31k long and 31k short almost as if it is cancelled itself off the market. We are now in the hands of the retail traders. which is roughly 56% Long at the time of writing.

If you take a look at other USD pairs - USDCHF sat on a major Gann level, NZD on a daily pivot which is currently creating a cross with a weekly Gann trend down.

Waiting on a little more clarity as to what the DXY does next.

Bias - short term, it looks bearish - longer-term, bullish with dollar strength. Especially if tomorrow's COT data has even a smaller level of JPY short positions added.


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