The Japanese yen weakened beyond 151 against the mighty dollar, thanks to the Bank of Japan's (BOJ) recent adjustments to its monetary policy.
The winds of change are blowing in our favor, and it's time to seize this moment and take action! By going long on USDJPY, we can potentially capitalize on this favorable market trend and secure significant gains. The...
Expected EJ to reject at 142.00, from my rejection zone (red box). AS you can see the market played by that structure, i'm considering a sell run to correct the bulls formed from last week's ascending triangle which occurred on Wednesday and that of Friday's session. Expecting a sell momentum to push this EJ to a possible 300 pips with final TP valued at 138.70...
Last week technically, GJ experienced a strong downtrend after it rejected from my rejection zone at 159.47. I expect this momentum to continue as you can see all odds favor the Japanese yen both technically and fundamentally as a new BOJ governor is in place!
With an RR of 1:4.5
NB: Red box zone: rejection zone
Blue box zone: breakout zone!
Hello guys! Here is a quick summary of what happened in the market today, especially in the Japanese one, after the Bank of Japan surprised everyone.
On Tuesday, the Bank of Japan made its first move towards a shift away from ultra-loose monetary policy after weeks of speculation. As part of an adjustment to its yield curve control policy, the BoJ decided to...
Haruhiko Kuroda, Governor of the Bank of Japan (BOJ), expressly denies expectations of monetary and fiscal policy tightening in the coming months.
He said Japan is in no position to tighten monetary policy.
This clearly indicates that the yen might be significantly weaker.
Technically, price is currently treading above 138.938.
We expect it to find resistance at...
USDJPY gained over 130 pips after BOJ signaled to continue easing.
The bullish wave has completed a significant wave of retracement after reaching 112.
It is highly probable that USDJPY will continue another wave of appreciation fundamentally where the Fed continues its effort to raise rate and BOJ continued to ease monetary policy.
The technical rebound and...
How long can the BoJ maintain its zero yield curve targeting with the growing divergence between US rates, strong GDP numbers and Abe's strong arming of Japanese corporates to raise wages? Looking for the USDJPY to test 100 congestion zone in the medium term followed by the 91 handle over the longer term. Extrapolate the strength of the USDJPY to the DXY and...
Fight with a recession and spur consumer spending – these two efforts Bank of Japan has been desperately applying with very mild signs of success. After switching to targeting bond yield curve in September – quite weird move in my opinion... Read more brokerarena.com
Waiting for USDJPY to either go down and bounce back up near 100 or break at 106.5 before going long especially with Kuroda leaving soon and the upcoming US election.
www.ft.com
www.bloomberg.com
50 Delta ATM Volatilities:
USDJPY -
- $Yen has an ATM implied volatility curve of 55.95%mrkt 24.08%1wk 18.31%2wk 14.12%1m
- Obviously we are aggressively steeper in the front end, with BOJ tomorrow and JPY MOF Fiscal Package details coming next week providing heightened vol for the 1day and 1wk vols - naturally we then see the curve tail off as the event...
Besides raising stock prices, the main idea behind QQE with a negative interest rate was to further weaken the Yen.
This effect could not be seen since the Introduction of QQE with a negative interest rate.
It is assumed that because of the "risk-off mode" of global investors demand for the "safe haven" Yen has increased, leading to an appreciation of the yen.
Main point of QQE with negative interest rate was to raise stock prices. Since the introduction of QQE with negative interest rate this effect could not be seen in Nikkei stock prices.
The Federal Reserve's regulatory point man said work to address the lessons of the 2008 financial crisis won't be complete without better regulation of short-term funding both inside and outside the banking system.
St Louis Fed President Jim Bullard may be the Fed's new super dove, but he's no pessimist, he says. Bullard is the lone Fed official forecasting just...
We had the best possible outcome for FOMC's Rate decision and Fed Yellens speech which was neutral IMO as expected, with the Economic Projections being dovish, downgrading the projected rate hike cycle. We now look to BOJ.
Trading strategy:
LONG USDJPY (possibly short also GBPJPY for longer term investors or investors that want to hedge against a hawkish...
