Last week we broke out of consolidation which yielded in a strong move to the downside and a weekly close below 110 This week we should see a continuation of that downwards momentum. Watch for a daily break and close of last week's Thursdays low for conformation if so that puts the 1105.44 level in focus. From the Head and Shoulder a measured move will take us right into that 1105.44 level which is also a confluence with major structure support. Also to take into note on the shorts we had a weekly closed right at the 161.8 expansion so a daily close below last weeks lows is necessary for confirmation to the downside. I will not be trading large targets until we get that conformation.
fundamentally: there's nothing coming out of the BOJ until the 27 - 28 when they hold their monetary policy meeting and Kuroda will give a speech on the 11th at G7 meeting. The market is on ege wondering when the BOJ will intervene and try to weaken the yen But we have 2 weeks before BOJ and the running logic among analysts is that Tokyo cannot easily intervene ahead of G20 meetings in Washington this week and a round of G7 summits it is hosting in May. Risk on - Risk is driving the market as of this moment and the yen's strength that we see is pearly a risk off trade. let's see if we will get that push to 105.44 in the next week or so.
fundamentally: there's nothing coming out of the BOJ until the 27 - 28 when they hold their monetary policy meeting and Kuroda will give a speech on the 11th at G7 meeting. The market is on ege wondering when the BOJ will intervene and try to weaken the yen But we have 2 weeks before BOJ and the running logic among analysts is that Tokyo cannot easily intervene ahead of G20 meetings in Washington this week and a round of G7 summits it is hosting in May. Risk on - Risk is driving the market as of this moment and the yen's strength that we see is pearly a risk off trade. let's see if we will get that push to 105.44 in the next week or so.
Comment:
Reuters Insider USD/JPY Saxo Analisis Video Clip: reut.rs/1Wn1Skj