- You can see that we have gapped higher to kick off the trading week on Monday as you would expect now that the bat between the Americans and the Chinese might be over. We just don’t know. We’ve actually seen a calming of tensions from both sides.
- So that’s a good sign. I think basically, what you have here is a continuation of what we’ve seen. And now we’re starting to focus on Japan again. That of course is because light monetary policy, loose monetary policy is probably coming. And that means yen printing in colloquial terms, we had broken above the 151 yen level an area that I had talked about for a while, and we’ve turned around to show signs of life, all things being equal.
I am Still Very Bullish Long-Term
This is a market that I think continues to go much higher. But what I’m worried about is the massive stop loss you may have to take into account in order to protect against this gap getting filled because gaps typically get filled eventually. That being said, we have gapped basically 130. Well, we gapped to open up right around 70 pips and then we’re up about 130 at this point.
So, all things being equal, this is a market that I think remains by on the dips, but I was hoping to get a little bit more of a dip than we got on Friday, to be honest with you. Longer term, we go higher. I just don’t see how that changes. I’ve been saying that for a while from somewhere around here in July, I think, and I’ve been buying dips and collecting swap. The gap, of course, is a completely different animal that you have to deal with, but it’s still the same strategy. You just look for cheaper dollars if you get that opportunity.
Want to trade our USD/JPY forex analysis and predictions? Here’s a list of forex brokers in Japan to check out.
Christopher Lewis has been trading Forex and has over 20 years experience in financial markets. Chris has been a regular contributor to Daily Forex since the early days of the site. He writes about Forex for several online publications, including FX Empire, Investing.com, and his own site, aptly named The Trader Guy. Chris favours technical analysis methods to identify his trades and likes to trade equity indices and commodities as well as Forex. He favours a longer-term trading style, and his trades often last for days or weeks.
