USDJPY – Stop still at initial level of 79.60. Currently finding Resistance at 79.50. Entered at 39.37, so currently 50% of risk utilised. I have no technical basis to exit the trade (boredom and lack of movement don’t count).
There is a slodge of JPY data coming out at half past midnight (London) which is job and retails sales related. It all looks pretty bleak. Maybe the data that will be released as per expectations, but similar to the ‘degraded’ data released late last week, and the resultant continuation of downward pressure on this pair, JPY is being artificially manipulated (soft intervention) to cause weakness.
So, my position is that I don’t think the data is likely to be worse than expectation as it is the expectation that was intended to do the job of weakening the Yen, not the actual data release event. On that basis, my expectations are that it is more likely JPY will strengthen and therefore start to drive down USDJPY.
I’m not putting in any order to take profits at target levels as I can back at my desk after midnight to monitor the situation live and make a decision of further action, if any, at that time.
