July 9, 2018 07:05: Dollar/Yen Trading Strategy [From Mr. Satoru Emori's Newsletter]
Last week, the US-China trade war and the US employment statistics were the headlines, but what about this week's outlook for USD/JPY? Here is a small excerpt from the morning delivery of Tetsu Emori's investment newsletter "Emori Tetsu's Real Trading Strategy," provided by GogoJungle.
We continue to hold long USD/JPY. It is in a consolidation phase after being overheated, but it probably won’t last long. If it surpasses 110.60 again, it should turn upward once more. Even on the downside, 109.90 seems to offer support. The overall dollar looks likely to move downward, but that would mean a rise in cross yen pairs. As euros and other currencies rise, the yen tends to weaken, causing USD/JPY to rise. If risk-on conditions emerge, USD/JPY tends to rise. I expect to see signs of this starting this week. The yen, considered a safe asset, will likely be sold more. If that occurs, USD/JPY would enter a new trading range.
From “Emori Tetsu's Real Trading Strategy” (Tetsu Emori) quote.
In Tokyo time, USD/JPY is all wicks with no clear direction. The wait-and-see stance seems likely to continue, doesn’t it? (Editorial staff)
USD/JPY, 1-hour chart.
