18 Aug 2016

MAKE IT OR BREAK IT LEVEL FOR USD/JPY

USD/JPY MONTHLY

The rate is currently testing the former broken 16-year falling trendline resistance as the new support. Adding to what is already a significant position for the pair, is the psychological 100.00 level which has come under pressure.

A dip below the 100.00 level may turn out to be a the push needed for BOJ to consider more radical monetary easing policies.

Yesterday's FOMC minutes also increased the probability for an at least one rate hike this year, which would further increase the carry and would make holding long yen positions costly.

Please keep in mind that this is by no means an advice to just blindly load up on long positions, just a thing to consider if you're planning to trade a possible downside break.





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