USDJPY Sep 17 to Sep 21 Outlook

By News Robot

Lawrence’s Comment

Recap
The flush happened as expected. And the downside target of B-2 was tagged. Then everything changed after Fed announcement on Thursday. The reversal rally took out the high of the week made on Monday. Closed the week at week high above Y-1.

Outlook
The reaction to Fed policy changes makes no sense because if it is reacting to the implication of infinite QE, we should see this pair collapse to new low. Yet, it bounced back big time. It is obvious that BOJ has intervented.

Going forward it will be very difficult to trade this pair as the 2 central banks are essentially at war against each other.

For now, temporary bottom is in place. As long as B-0 acting as support, we should see at least one more push to go higher.

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