- Some institutional banks have been calling for ¥125.00 as the next big target for bulls on the pair. Indeed, at the current pace of appreciation, we might just be sessions away from that objective to be met.
However, some analysts pointed to the possibility thatJapanese officials will start talking up the yen, warning that the pace of the currency's depreciation is undesirable.
- As the USD/JPY continues higher and extends its persistent uptrend, we are looking for an opportunity to grab some piece of the action on the long side in the direction of the main trend.
We will be glad if prices ticked below ¥122 and we can initiate a low-risk profile entry order, as around this level of interest is a very decent barrier, mainly formed by the previous resistance three days back.
- If this scenario happens, we won't be part of a short selling wave, and will rather make another attempt to long 200 pips lower at the big round number of ¥120 and hold our position for a longer time.
