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USD/JPY stretches towards 61.8% retracement

Post BOJ losses continue to evaporate

The BOJ decision to leave monetary policy unchanged was never as big a surprise as the market reaction indicated.

The BOJ decision to leave monetary policy unchanged was never as big a surprise as the market reaction indicated.

Given that, and the inability to extend the drop, it's beginning to look like a bit of a blow off. At the same time, the jawboning and threats of intervention from Japanese officials have thinned out parts of the crowded long yen (short USD/JPY) trade.

What's most impressive is that the dollar is moving higher without the help of the Fed or good economic news. Yellen has remained dovish and the dollar has cruised higher despite a weak jobs report.

In short, once the 61.8% retracement at 109.49 breaks, there's not good reason to be short.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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