YaKa

USDJPY - Reconciliation with a foreseen correction on equities

FX_IDC:USDJPY   U.S. Dollar / Japanese Yen
379 5 4
The move on USDJPY             looks impulsive and would be "confirmed" if 119.75 on close with target 124ish.

Also I see USD potentially appreciating against EUR to 1.07 and EURGBP             falling further to 0.72.

But I see equities correcting from here and have difficulties seeing that happpening with USDJPY             climbing further.

Solutions:
1 - I am wrong on equities - Hope/think not.
2 - equities fall while usdjpy             increases - Why not.
3 - equities fall while usdjpy             reaches back to 116 a last time but eurusd             falls at the same time... and eurjpy             properly collapses.
4 - Equities fall and usd fall at the same time

(3) is my best guess right now.

Conclusion: although the friday move looks very impulsive, i would not chase it higher. I would not short it either as i am short equities already.

Neutral but skeptical about the long.
XLU, TLT, IYR took at big red marubozu
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Yacine,
there are expectation that Yellen could raise interest rate sooner which is why it shot up last friday
snapshot
+1 Reply
ForexTools jangseohee
:)
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IvanLabrie PRO jangseohee
Small rally, then massive failure and back into channel? I'm fine with capturing that last leg up.
+1 Reply
IvanLabrie PRO IvanLabrie
snapshot
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