USD/JPY charts(in all time frames) look really bearish and the pair is clearly being drawn like a magnet to its 111.60 level which is the last line of defense. If that goes we might see 109 or even lower in the coming weeks. President's address speech in Congress might help the dollar to bounce or sink it - it all depends if markets want to rally on promises one more time. If there is more substance in president's speech perhaps the deteriorating sentiment will improve.

I would love to short the pair again but the question is from where. Something tells me that we can only get another shallow correction to 112.50, but there is always a possibility to correct as high as 113.26 on profit taking before Tuesday even on Capitol Hill. I will be also watching closely how EUR/JPY & GBP/JPY behave, if they keep going down they will drag USD/JPY with them.

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