Trading strategy for the week: Sell USD/JPY on rebound - Trendsetter FX

Wilson Leung, Director of Trendsetter FX, through his detailed technical view suggests that the Yen is likely to move higher, with USD/JPY expected to probably dip below 100.00 levels and towards the support at 97.50, and later the psychological level of 95.00.

Leung suggests selling the Dollar-Yen pair on rebound towards 103-104 levels for the downside objective of 100.00/sub 100 levels this week. He believes that the corrective rally from the post-Brexit low could have ended at a high of 107.49 levels, and the subsequent sell-off partly indicates the broad based USD selling on falling Fed rate hike bets.

He adds that a drop to 95.00 levels would be a sort of challenge and an invitation to Bank of Japan (BOJ) to do something.