Strategy Video: USDJPY Ready for Major Trend Revival or a Correction?

By DailyFx | Updated August 26, 2014 AAA

DailyFX.com -

Talking Points:

• USDJPY broke a more than 15-year trendline, leading many to envision the next leg of a large bull trend

• A connection to risk trends via carry trade and the market's inclination towards range clouds the outlook

• Short-term, USDJPY is one of the most exposed to a correction technically and fundamentally

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

Is USDJPY setting the stage for the next leg of a much larger bull trend? While the longer-term views of the chart and interest rates forecasts will eventually offer the bulls a platform, the near-term conditions tilt far more towards a correction. An indelible connection to risk appetite curbs the ambitions of the yen crosses as much as it sees equity ambitions and participation fizzle when new highs are finally reached. Furthermore, short-term performance and fundamental theme sets USDJPY apart from its yen crosses when we consider the potential for the bears to return. In today's Strategy Video, we look at how the technical, fundamental and market condition elements behind USDJPY present a strong opportunity for bears given the correct cues.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. USD/JPY wobbling around 109.00
    Forex News

    USD/JPY wobbling around 109.00

  2. Dollar Charges to Multi Week Highs on Strong US GDP Data
    Forex News

    Dollar Charges to Multi Week Highs on Strong US GDP Data

  3. USD/JPY briefly rises after mixed US data
    Forex News

    USD/JPY briefly rises after mixed US data

  4. Ranges Persist in USD-Pairs Post-FOMC Meeting
    Forex News

    Ranges Persist in USD-Pairs Post-FOMC Meeting

  5. Nikkei ends at a three-week high
    Forex News

    Nikkei ends at a three-week high

Trading Center