Morgan Stanley believes in neutral JPY related to USD that means the bullish trend to be continuing with secondary ranging market condition:
JPY: Watch Wages. Neutral.
"More global asset market volatility would support the safe haven JPY,
but we have to increasingly be aware of the risk of a BoJ response.
After a 2Q contraction, the ramp into 3Q growth remains disappointing.
Key will be cash earnings to test if the BoJ’s narrative of higher
corporate profits filtering through to wages is gaining traction."
Let's
evaluate the situation with USD/JPY concerning future possible
direction of the trend: bearish or bullish in long-term situation?
USD/JPY: ranging bullish. This pair is
on primary bullish market condition with secondary ranging within 125.79 key resistance and 116.13 key support level.
If the price breaks 125.79 resistance so the bullish trend will be continuing.
If the price breaks 116.13 support level so we may see the secondary correction within the primary bullish.
If the price breaks 103.33 support level from above to below so we may see the reversal of the price movement to the primary bearish market condition.
| Resistance | Support |
|---|---|
| 125.79 | 116.13 |
| N/A | 103.33 |
