This week, the main focus is BOJ Meeting on Thursday. I very sympathize PM Shinzo Abe about his effort to improve Japan economy, but It seems Japan economy is lossing momentum despite PM Shinzo Abe and BOJ used three arrows called Abenomics. Low inlfation and low export damaged to his plan, and this is the right time to do something before 2015 end.
Here is my viewpoint, I believe BOJ will inject more liquidity to market, expand will be the option on the table. Depreciate Yen is the main object of BOJ next meeting.
To trade USDJPY , we need a strong patience and strong sense. I've waited for two months for a break above Kumo cloud and 120.50 . When I think it cann't break this resistance, USDJPY inversely move to opposite my view.
Now Indicator broke its resistance at 50 and move higher to overbought zone.
- Kumo cloud
- SMA200 ( Key level
- at 120.50
All of levels was destroyed; the trend now is uptrend.
BOJ Meeting will provide a chance to buy USDJPY .
However, I encourage to buy USDJPY at around 120.50 level where old resistance became a meaningful support.