After all... is the Nikkei Stock Average below 16,500 yen a good point to buy on dips!?

Good morning.
Starting today (the 20th), the much-anticipated Bank of Japan monetary policy meeting and the FOMC (two major events in September) finally begin... Accordingly, of course, the market has entered a complete wait-and-see mode. As a result, dollar/yen has traded in a narrow range from the mid-101s to the mid-102s, and for the near term there is hardly any “island to grab.” At least for swing traders, it would be prudent to basically stay on the sidelines for USD/JPY.

＜NY close on the 19th＞　●Dow Jones Industrial Average = 18,120.17 points (−3.63)
● U.S. 10-year Treasury yield = 1.712%　● USD/JPY = 101.91 yen　● EUR/USD = 1.1174 dollars

On the first business day after the three-day weekend, the Tokyo Stock Exchange opened with surprisingly strong movement in the Nikkei Stock Average. Considering that the range had previously been a steady decline from the high of 17,156 on September 5 to the 16,359 on the 15th low, this movement is understandable. In short, ahead of the two major events, there is a noticeable tendency to unwind previous short positions.

Of course, as repeatedly stated in this newsletter, “buying on dips below 16,500 is generally sensible,” so it seems that there is still some hesitation to aggressively place sell orders around the 16,500 level. However, the buying back that accompanies position adjustments before the two major events is naturally limited, which is something to calmly note. .........

Continue from here

↓↓↓