As I thought it would, USD/JPY rebounded from
110.00 and not only reached 110.70 but it almost reached 111.00. I think
that if the rally continues today we'll see it reach 111.50.
current trading is down, I think tranding up is strong.
Let me write my opinion on USDJPY. I do not claim to be the ultimate truth. On W1 I see a triangle:
In my opinion, in August, there will be no rapid exit from this triangle. Usually in August, the forex is quiet. The nearest significant event for USD will be NonFarm. It will happen tomorrow on Friday, August 4, 2017. However, this event is unlikely to bring a pair of USDJPY out of this triangle, because I expect that there will be good news on unemployment in the US. And this should strengthen the USD, so you can expect that the USDJPY will move up. The next significant news on USD is the Federal Funds Rate - already on September 20, and for JPY - the BOJ Policy Rate - as much as September 21, 2017. Conclusion: I predict that in August and the first half of September there will be a movement in USDJPY pair - within this triangle. That is up.
For the moment I don't have any new positions as I don't think there
will be any major changes before the US Non-Farm Payrolls tomorrow. I
think range will continue until then.
The range is getting tighter and tighter before
the NFP. I recommend caution, once the news come out there will be a lot
Support is expected at around 109.20. I'm thinking about going bullish if it gets there.
USD/JPY has been trading choppy recently as price is fluctuating around 110. Neutrality now could be the best strategy.