he 25 and 75 lines nailed BOTH the high and low today for USDJPY. I’m willing to buy into the center line near 109.15 given the daily volume reversal today (see futures chart below). Near term upside focus is the upper channel line near 110.00.
Yen crosses reversed higher today. Expanding on the implications from the Nikkei bear trap, GBPJPY tagged the 3/24 low today before reversing higher. Price also held trendline support. I’m constructive towards 150.74-151.31 (former lows).
It was pure risk-off in FX today as Yen was the only major that strengthened against the USD. I ‘like’ downside in Yen crosses generally, especially given the volume reversal today (see futures chart below…bullish Yen reversals since 2014 are highlighted). Price action from the April low takes the form of a wedge. The lower wedge barrier is about 109.50. The high volume level from FOMC is now proposed resistance at 110.50.