USD/JPY – S & R levels – will there be bears…? or at least some profit taking

Time to revisit the Yen since its flirtation and rejection with the 100 level… There has been a great yen run so far which could continue to the moon (150 not impossible) but in order to get there we have to get through more then a few things and trillions of dollars of sellers…

SO first thing first breaking the current channel will be important and might take some time… There will in my opinion be sellers working this channel and swing traders will be looking to book some profit given the fast a decent run up from 100 there has been. 105 is a pivot cluster and a 78% retrace of the previous swing so a good point for sellers to jump in… this level looks nice holistically and can fit in nicely to a bearish fundamental narrative… if you think monetary policy is full of shit as 1) USA cant raise rates and 2) jap loose monetary policy cant do shit either 3) bear market is stocks getting in around this level would give a good run up to attack the 100 level again

Next thing to consider is the JCB meeting this month – these guys will trigger allot of action by their inaction or action – that events date is marked on the chart

To trade this I am looking to short this pair on the second resistance marked then take some profit at the monthly pivot and run some inventory down to the lower levels but will off load most before the JCB meeting…

I will update this pair after or just before the event – but dont forget about the massive run of 2014


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