[Dollar-Yen Strategy] Market outlook ahead of Trump-Ishiba meeting
[Dollar/Yen Strategy] Market Outlook Ahead of Trump-Ishiba Meeting
Hello, this is Neko-kai from Trade Idea Lab. Currently, the USD/JPY is on a downward trend. However, rushing to sell is a scenario to avoid. The reason is that the impact of the Trump-Ishiba meeting scheduled for February 7 is unclear for the market.
Trump has long stated that “the dollar is too strong against the yen,” and with an eye toward invoking Plaza Accord 2.0, he may be aiming to correct global dollar strength and restore dollar dominance. Therefore, depending on the contents of the meeting, the USD/JPY could experience significant volatility, and a cautious approach is required.
Trading Strategy: Sell on Rallies
At present, the basic strategy is to sell on rallies. It is expected that the pair could retrace up to the 154 yen mid level, which is the highest Pivot Point (PP) not yet touched since yesterday.
For a concrete entry point, consider the area around 154 yen where 5-day and 10-day options are concentrated, and initiate selling on rallies from there.
Looking ahead, it is necessary to carefully assess the contents of the Trump-Ishiba meeting and be prepared for potential rapid market moves.