As the BoJ commenced some minor tapering to its massive Balance Sheet in the month of December, the past week has seen some strong risk-on across
As the BoJ commenced some minor tapering to its massive Balance Sheet in the month of December, the past week has seen some strong risk-on across Commodities, Equities and JPY crosses. Manufacturing data across the major exporters are still in expansion mode, including Japan, this is good longer-term for the Nikkei, but may complicate JPY price moves. I expect a retrace to the downside on JPY pairs.
Technically the GJ is showing bearish divergence very close to weekly L3 camarilla pivot. The divergence is aligned with historical sellers and if we see a 4h close below M H3, the pair should drop faster towards 152.80- intraday targets and possibly 152.30. Continuation of the bearish drop is expected only if the pair gets below 152.30.