USDJPY: Trendline breakout, wait for retest
Looks like USDJPY has broken down through the rising trendline, there was a slight recovery at the backend of Friday, this indicates we could see a short retracement from here to test the trendline break, and then down.
The Yen performed well at the start of Friday, I don't believe this was BoJ intervention, as they have said that they expect the fundamentals to play out - we'll see, bad data from JPY this week may necessitate intervention, however good data on Friday (PMI) will I think be enough to start the recovery process for the Yen.
If Japan looks like it's going to have a soft landing then I think markets will reward the Yen with a more positive sentiment and this could mean we get a lot of good action for these crosses.
I think the USD is done being bullish for now (even the hawkish speakers cannot convince the markets), so either way I think we'll see this pair fall, so monitoring LTF's for a suitable entry / rejection from the retest point.
A break below 148.5 will see a more sustained move to the downside, imho.
The Yen performed well at the start of Friday, I don't believe this was BoJ intervention, as they have said that they expect the fundamentals to play out - we'll see, bad data from JPY this week may necessitate intervention, however good data on Friday (PMI) will I think be enough to start the recovery process for the Yen.
If Japan looks like it's going to have a soft landing then I think markets will reward the Yen with a more positive sentiment and this could mean we get a lot of good action for these crosses.
I think the USD is done being bullish for now (even the hawkish speakers cannot convince the markets), so either way I think we'll see this pair fall, so monitoring LTF's for a suitable entry / rejection from the retest point.
A break below 148.5 will see a more sustained move to the downside, imho.