Odds stacked against Dollar-Yen bulls – Trendsetter FX

Dollar-Yen pair has witnessed low volatility and a range bound action in the recent days, forcing many to consider the possibility – pair may have bottomed out. However, Wilson Leung - Director Trendsetter FX, remains in favor of selling the upticks in the USD/JPY pair.

While talking to TIP TV’s Zak Mir, Leung detailed why he thinks the odds are stacked against USD/JPY bulls.

Key points

Roller coaster move in USD/JPY over the last few days

Bearish invalidation seen only above 102.66

On a larger scheme of things, bearish invalidation seen above 105.50 area

Remains in favor of selling the rallies in USD/JPY

Pull back in equities is likely to be a catalyst for USD/JPY sell-off

Tomorrow’s US CPI data is important

Below 100.00, BOJ would be forced to step up its rhetoric