FxWirePro: Yen’s next leg up shows promise of 98

Japanese yen has strengthened a lot since last week, and it is likely to strengthen further. After reaching around 111.4, it reversed sharply after Japanese Prime Minister Shinzo Abe declared that he will not introduce an increase in consumption tax from 8 percent to 10 percent, until October 2019. The tax was originally planned to be increased April next year.

 We believe, our long-term call target (Sell USD/JPY @118 targeting 98) is within reach and Yen will not be able to break above recent high. It is likely to reach the target in the current leg.

Recent weakness in global economy, us jobs report, and fear surrounding Brexit, all has been fuelling Yen’s rise against all currencies. The yen is the best performing currency in the world this year.

Momentum can even push Yen below our target and somewhere around 96 per Dollar.

Anyone who missed the previous long-term call can still add a fresh position.

Trade idea –

• Sell USD/JPY at current rate 106.6 and at rallies, with targets around 98 and 96 and stop loss around 111.5 area.