After weeks of so many speculations and questions : “ Is BoJ going to intervene and where “ we got a simple answer – NO
Even if Boj did some undercover work and used lots of senseless blubber , market did not flinch.
In good ole’ times, even Reuters would use some light profanity and go openly with the well known sentence : “ Put your money where your mouth is “ or “ Money talks – BS walks “
None of that happen…not from Reuters ( or any other well known market contributor ) not from the BoJ.
So what do we have on our hands now ?
Some very experienced and esteemed colleagues already said : We have entered uncharted territory !
But is that really correct ?? Not really….And how come , you all knowing thwart …
Let me show you how come …Weekly Chart :
If you just for the moment put aside actual levels – rates , you can see that Trend lines are telling a whole story. USDJPY is clearly moving UP, kind of unopposed by anything serious.
We have two interesting levels to watch :
Resistances at 156.000 & 156.750
Supports at : 153.500 , 152.000 , 151.500 & 150.000
If the pair can’t surmount those resistances , we can see correction going as low as 142.500
But if it does break above 156.750 , we would be on the road to 162.000 and even 172.000 respectively.
I can clearly remember the days when just talking about possibility of USDJPY at 130.000 could have placed you in a loony bin easily and at best….worst case scenario – your carrier in forex would be over. That was the View from bellow….
But today, we can more probably state : “ Seeing 130.000 again might happen of course, but we should be waiting years for that to happen “ and from the opposite side of the line – this time from the above.
As for the BoJ and their intentions…well, if they really want it lower, they would wait for a nice Blow of Rally and start Selling it together with loads of other Big players taking their Long Profits.
And even then, without playing together with other Central Banks might be such an ordeal , that would leave a very sour taste in their mouths.
Be aware that even in the calmest times for Yen, it is very difficult to trade it when it comes to placing stop losses – the pair swings violently for no good reason at the moment, just to continue the road it took earlier.
What can cause it to swing from time to time are the Crosses – namely EURJPY, GBPJPY and direct strength or lack of it of the USD , primarily EURUSD.
Position yourselves within given parameters and use intraday charts to determine entry points.
And never – EVER forget to place your stop losses accordingly and prior to entering the position !
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