LupaCapital

USD JPY - let's ride the rollercoaster

Long
FX:USDJPY   U.S. Dollar / Japanese Yen
Hello Traders and Analysts,

A Note before reading - this is a forecast analysis - based upon our trading strategy. This is tagged long, due to purchasing further increments upon imbalances.
Please do not take this as face value and conduct the relevant investment strategy to successfully trade the probabilities.

Master Key for zones
Blue = Monthly
Purple = weekly
Orange = Daily
Magenta = 8 Hour
Grey = 4hour
Pink = 1 hour

Monthly imbalances for USD JPY
These zones have been highlighted due to the imbalance showing a strong pivotal reversion point where price has set a psychological level of 100.00 to be a structural level for the USD.
The monthly wicks also highlight a great opportunity where the imbalance is strongest within the wick zones around 100-102.
Second to this, the monthly test occurring back in January 2021 created a higher low, informing that the buyers have taken over the monthly imbalance and have created a weekly imbalance zone where price will use as a discounted zone.

Daily Fibonacci
Currently price is heading to -0.272, before an opportunity for the trend in most scenarios to take a breather, where price will look towards the 8hour imbalance zone. Price has become bullish with a mounting risk of the VIX and the safe haven of both the USD and JPY.
The technical aspect here is price will need to engineer a long movement so when coming to a pivotal point on the Fibonacci extension target, price will react here, allowing discounted buy opportunities.

8 hour imbalances

Weekly structure forming of the monthly imbalance

USD JPY VS DXY VS Debt instruments
Simplified - U.S. bond yields gauge the performance of the U.S. stock market, thereby reflecting the demand for the U.S. dollar in subsequence.
Where investors move away from stocks and other high-risk investments, the new increased demand for “less-risky instruments” such as U.S. bonds and the safe-haven U.S. dollar pushes their prices higher against respective pairs. However, when it comes to the USD JPY - the Yen will show it's weakness.
Remember: A rising bond yield is dollar appreciation. A falling bond yield is dollar devaluation.


Keep an eye on the SPX
Last comparison;
Inflation ETF vs SPX500 .
If you as a trader are interested in the price ratio of Shiller P/E ratio , the market is at this moment 35.83x, with low inflation at the moment, the bulls are on the run. Watch this space.

SPX idea: - updates pending

XAU USD
See here for the imbalances on Gold. This can help adjust the situation upon the USD.

Do you enjoy the setups?
  • 10 years combined analysis experience in capital markets
  • Focus on technical output not fundamentals
  • Position and swing trades
  • Provide updates where necessary - with new updated ideas tracking the progress.

If you like the idea, please leave a like or comment.
To all the followers, thank you for your continued support.

Thanks,
Team LVPA MMXXI
Trade active

Related Ideas

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.