For the rest of the summer, I’m going to try and be a strong bull in this market and corner it. I know that we are sitting at very low points on yen charts and Japan is an exporting country so it tends to not enjoy expensive yen, and the Federal Reserve could go through a monetary tightening sequence sometime in fall or winter.

In regards to brexit and Yellen testifying, I’m going to make a safe bet that the UK will remain with the EU, which means that the nothing has changed in that section in the world and people won’t fly to yen safe havens. As for Yellen I believe she will state something good for the US economy. I felt that she gave some of that sentiment in her last speech. Anyways, If you’re expecting that we are reaching the bottom of the yen pairs, now is a great time to make a case of an entry.

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In our 1 hour chart, you can see that we are sitting at the 618 and 786 retracement with an oversold Stochastic. I consider this the sweet spot because of better risk to reward. Stops should go bellow the 886. If it blows through there, I would try to buy the double bottom at 103.550 and keep stops at 103.450.

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On the 4 hour chart you could see that we are reaching our monthly target and the oscillators are indicating that we are entering a ranging phase. The MACD could also be indicating bullish divergence from the previous months lows.

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