I received a question from Noel Medina who asked:
What is your trading strategy on USD/JPY? Where do you think it will go from here?
My trading method has always been “Fundamentally Driven, Technically Executed” regardless on which pair. Fundamentals to guide me on which market direction I should follow (buy or sell), and I would use Technical analysis to refine my trade’s entry and exit based on the Fundamental analysis. Click here for more details.
The Bank of Japan (BOJ) is refraining from adding stimulus and the Fed stresses that they expect to keep the rates near zero for some time. This also shows traders to expect the Dollar-Yen rates to fluctuate more in the coming year than it has over the past 12 months
Fed fund futures show a 65% chance that Chair Janet Yellen and her board will raise their target rate for overnight loans between banks by July, higher from 53% odds at the end of June. The question now is when will the BOJ expand stimulus again? Governor Haruhiko Kuroda and his board have kept bond purchases at around 7 trillion Yen per month since April 2013.
The Yen slumped 18% against the dollar last year, we expect the price to consolidate toward the end of the year. Further selling off could be seen in 1Q 2015.
I hope this answered your question.
To your success as a profitable trader,