After the tremendous bearish moves on the Yen pairs that we’ve seen (as expected), we’re currently looking at some loss of momentum. Despite that, I believe it’s just a temporary move as it’s still too early to call for a reversal pattern in formation because it surely won’t come overnight, considering the amount of pips moved since the beginning of the year and we know that these kind of reversals take their time (remember the old man easing into an hot bath).
Fundamentally, it is important to note that we have BoJ meeting on Friday and last week we had Kuroda talk about the exit of the enormous monetary stimulus, by April 2019. This was big news for the Yen pairs, as we watched them decline further on hopes of inflation reaching 2% by that time.
Regarding seasonality we are still expecting for the Yen pairs to come down further, maybe until the end of March or the beginning of April, so we may have another 3 more weeks of yen strength to take advantage of.
Let’s look at the Technicals (for the purpose of this post, I’ll only use Daily Charts as I’m not looking for a specific entry on a shorter timeframe, but rather just to analyze the “bigger picture):
(It’s the first time I do this sort of posts, so I would tremendously appreciate your feedback).