USD/JPY
Strategy: Flat
With recent volatility making shorter-term positioning less than insightful, we turn to the monthly charts to get a sense of the overall trend in USDJPY. Prices remain confined in the downward-sloping channel established from the top in 2007 and are now testing support in the 84.21-87.09 region, the major bottom dating back to 1995. A bounce looks likely with RSI showing positive divergence, but whether this will prove to undo the current downtrend remains uncertain. We will remain flat for the time being, looking for a more actionable signal to take a firm directional bias.
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