I’m definitely not comfortable trading the USDJPY, there is some kind of intervention going on, once it starts to go down, it moves back up, over and over… I wouldn’t risk my capital on this pair, but what about the other JPY crosses? How do you feel about them?
One of them that I’m currently monitoring is the CADJPY, if you look at the long term charts its clear that it is trading in a bearish market condition and likely to continue its way down. But what I like the most about it is that on the short term charts it’s been trading in between consistent support and resistance levels:
I’ll see if it retraces back to the short term resistance level and forms a significant pattern with downward pressure.
One thing to note though, I’ll think it twice if the USDJPY drops significantly, because the BOJ will intervene.
Trade Safe!
Raul Lopez
Forex Training
