Tendies ripe for the taking on the USDJPY
The dollar yen has been trading in a random walker manner for the longest time. There is now enough longs that are positioned for the market makers to liquidate and profit from. Just look at the number of tendies on the chart!
BEAR CASE
There are several levels on the chart that can provide short term relief for the downwards move but we are ultimately targeting the 107.5 levels. The liquidations of the longs will result in more selling into the markets as traders are forced to sell their leveraged long positions at a loss in the market.
BULL CASE
If the bulls find the resolve to buy up the dollar at these levels, we think that the price will continue to trade within the descending triangle building up for the downside move that wlll eventually come.
BEAR CASE
There are several levels on the chart that can provide short term relief for the downwards move but we are ultimately targeting the 107.5 levels. The liquidations of the longs will result in more selling into the markets as traders are forced to sell their leveraged long positions at a loss in the market.
BULL CASE
If the bulls find the resolve to buy up the dollar at these levels, we think that the price will continue to trade within the descending triangle building up for the downside move that wlll eventually come.