USDJPY - When will buy the dip stop?

4 июл.

Is the buy the dip stopping? Based on the charts and fundamentals not anytime soon! The Yen keeps getting hammered and will continue to go down. Only the BOJ can save the Yen but will this even be enough? We will see.

Technicals
→ We are in an up sloping channel which we respect since beginning of '24
→ Fibonacci -0.618 is a key area.

Fundamentals
→ Last time BOJ intervened was in April '24. Even after being added as a currency manipulator watchlist from the US they will inevitably keep intervening. They simply have no choice!
→ Interest rate is still low in Japan and that will keep investors from investing in the Yen.
→ Outlook on DXY is neutral to slightly bullish in the short term but the main trajectory of volatility is the Yen not the USD.

Trade
→ Buy the dips in key areas
→ Resistance at a the up sloping channel which also correlate with the FIBS

Your trading friend,

Simba Trades

14 июл.

Заметка

What a dip! Due to weaken USD and Yen intervention we see Yen rising. Is this the market shift we were waiting for? I am not convinced yet. We need to break the current daily candle with a engulfing candle to confirm the channel break down.

Here is a play for coming days/week