Forex Strategy Video: Are These Major Trend Reversals for USDJPY, EURJPY?
• Though the BoJ's decision against a QE upgrade was expected, it is still a blow to yen cross bulls
• With the Nikkei 225 retreating, risk trends are threatening to collapse the other pillar of strength
Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.
USDJPY, EURJPY and GBPJPY are all within reach of trendlines that define critical support of the past 18-month's bull trend. Is this a pullback opportunity for the recently struggling bulls or is this the point where we change our primary course? While the technicals will give us critical cues and structure for trade setups, fundamentals will be the deciding factor to direction and conviction. The BoJ's confirmation that it is not immediately interested in QE upgrades has unnerved a market that has believed the central bank was endeavoring to drive the crosses higher. Should risk aversion mark a break lower with a benchmark like Nikkei 225, it will only further expose the disparity between current levels and fundamentals. We discuss this unique fundamental opportunity and its trade potential in today's Strategy Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.