First, sorry for the wrong date on the previous email from today, it should be January 17 (today), not January 16. Now, onto the USDJPY trade idea:
The USDJPY pair continues to rise at a very gradual pace since the sudden flash crash on January 3rd. The overall technicals and fundamentals, however, suggest that another bearish leg is more likely than a material extension of the bullish move to the upside.
The bullish attempt yesterday at the 109.00 resistance was rejected and USDJPY has slipped below it again. For the moment, USDJPY is still trading in a gradual bullish channel and the support trendline stands around the 108.70 level. A bearish break below it would open the way toward 108.00 which would give us an opportunity to enter a short trade.
If/once this occurs, USDJPY could easily continue below 108.00 and toward 107.50 and 107.00. However, it's still early to discuss that and we will see how things develop from here.
