I don’t know about you, but I don’t like how the Yen crosses have been trading lately, they seem a little nervous and hesitant, and now that a think about it, there could be a few reasons they are behaving like that:
BOJ Interventions – The BOJ is nervous at the levels the JPY is trading right now, they have been intervening selling JPY.
JPY Interest Rate announcement – Even when no hike was expected, anything could happen during an interest rate announcement.
US Non-farm payrolls – All currency pairs react to this announcement
Technically, they have been retracing at random levels, I see no clear direction on all of them. Now imagine, if sometimes the market is as clear as water and the market still goes against us, what could happen when the market is no clear at all?
I’ll leave the yen crosses alone for this week, we’ll resume analyzing and trading them next Monday.
The only Yen cross that is behaving in a clear market condition is the EURJPY, I will keep an eye open in the EURJPY, we’ll see what happen. I’m currently waiting for the EURJPY to break the ST resistance level at 115.22 to start looking for long opportunities.
How about you? What do you think?