USD/JPY discussion 28th May 2012
Well, I thought I would stimulate the forum with some usd/jpy discussion as well. I see the price has fallen from 83+ when traders were massively long back down to 78 where it sprung up from the Oct/Nov BOJ intervention price. It also happens to coincide with the 61 fib, if people believe in fibs. Certainly I have no idea what this run into the JPY is about (no positive swaps, possibility of more QE and intervention), and would think about going long for a target up above 83 - 90 - so about 500-1000 pips possible over the next few months. Of course if the risk aversion continues then its possible it will drop into 75 again, but surely the BOJ will not be happy with that.
Japan is fighting deflation. BOJ is trying to reach 1% inflation benchmark.
At the moment it could be entering a worthwhile area to watch - about 79ish now.
Originally posted by CFXsignalsAt the moment it could be entering a worthwhile area to watch - about 79ish now.
USD/JPY lowest is around 76. Current situation can make its trend bearish but I think it will not come down to 75.
Still, BOJ cannot be too happy about this. Don't know their options - obviously intervention doesn't work because it just comes right back around after 2 months each time.