USDJPY Short In Play
The recent USDJPY short idea triggered on a break below the 128.50 level with price currently sitting around half-way to the first target. The move lower has been rather laboured, looking more corrective than impulsive, so not a bad idea to move stops into protective placement for anyone short. The retail short position is reducing though not as quickly as hoped, however while equities remain supressed JPY is likely to find a better bid near term which should help lead the pair lower.
Speaking yesterday, BOJ’s Kuroda reaffirmed the bank’s commitment to maintaining loose monetary policy. However, Kuroda was keen to highlight that the bank is confident it can achieve a smooth exit from its current strategy when the time is right and as conditions approach the bank will lay out an exit strategy.
Keep an Eye On
Today’s advanced USD GDP figures will be the key market focus. With the US Dollar finding little support on the back of last night’s FOMC minutes release, a disappointing number today could easily send USD lower near term, calling the Fed’s aggressive tightening plans into question. Market expectations are currently geared towards an unchanged 8% reading. However, should we see an upside surprise, this would likely fuel a bounce in USDJPY from current levels.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.