JPY has been probably the most profitable and at the same time, the most volatile, trade since November of last year (2012). Over the past couple months though, the Bearish momentum on JPY seems to have flattened out quite a bit, and the JPY has been trading mostly sideways. Part of the reason for this is undoubtedly the uncertainty in Washington and not so impressive economic data from Japan and the US. I believe this is about to change. The data from the US will start improving over the next couple months, which will in turn put more pressure on the JPY.
The technical case for going Short on JPY is also very compelling. JPY has been trading in a well defined consolidation pattern.
Here is a Daily chart of JPY:
Price Target: 103
Note: For those who don’t trade Forex, the above trade just means that you’re Buying the USD and Selling the JPY.
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