Enough is enough

Yen has strengthened against the dollar , reaching 101, a level not seen when it was that low in Nov 2016, almost 3 years ago.

USD is facing lots of pressure with many expecting the Feds to lower interest rate by another 50-75 basis points soon. Feds still believe monetary policy is the way to go to help stoke up the ailing economy.

This Yen strength is not good for the Japanese economy as it is damaging to the export sector. Yesterday, the Nikkei fell by 6%, one of the lowest among the Asian markets. It is still coping with the Covid-19 on top of the ongoing rumours of the organisers cancelling the forthcoming Tokyo Olympics in July. If this is deferred or cancelled, the Government will stand to lose hell loads of money , something that the Asian leaders cannot afford to lose "face"( dignity, pride)

Thus, I believe very soon the BOJ will announce some measures to tame the Yen strength else it will be in serious trouble. That means, shorting USDJPY should be almost done after fallen for 10% from the peak of 112.

The support at 103.035 is crucial to push the price up higher to close the gap above. There is a stronger support at 102 level and if this level is taken out, then this trade setup is not valid.

As usual, have a stop loss in place, employ appropriate risk and capital management to protect your position.

I do not know if this is the bottom so please exercise due care in placing your position. If it goes according to plan, you can average up than to throw your whole fortune into it.