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Published on Oct 13, 2016
The
USD/JPY. Initially tried to rally during the course of the session on
Thursday, but found the area close to the 105 level would be a bit too
rich for the buyers. This makes sense, as we have been grinding our way
higher and we are a bit overbought, but most importantly we are at the
top of consolidation. In other words, a pullback from here makes perfect
sense but I do see a lot of noise just below and as a result I think
that sooner or later the buyers will come back into the marketplace at a
higher level than previously. I still believe that the 100 level
continues to be the “line in the sand” when it comes to the Bank of
Japan. On the other hand, if we just shoot straight up from here and
finally cleared the 105 level, that is also a buying opportunity.
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