We had a good run trading USDJPY between 100 and 103 in August, I mentioned that potentially we needed to re-look this trading strategy going forward.
Taking into account the continuing Brexit fears which will strengthen the JPY, but then again, weak growth and low CPI in Japan will weaken the JPY, then, the supposed ‘helicopter monies’ hanging overhead which will weaken the JPY, then the threat of FOMC rate hike in December which will weaken the JPY.
All in all, I believe the USDJPY channel has now moved to a potential new channel, that is, 102 to 104 range. Look at the 1H and 4H price chart that I have appended below including the Fibo: –
Let’s continue to observe this new channel
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