AFTER NOTIFIED BY THE IMF AND OECD, THE FED AND BOJ ADJUST THE PRICE STABILITY OF USDJPY BY MANAGING THE UPPER MEDIUM TERM BAND AT 117.50. THE PAIR IS UNDERWAY TO MOVE TO LOWER MEDIUM TERM BAND ESTIMATED AT 100.00 FOR 1750 PIPS MEDIUM TERM EXCHANGE RATE TARGET ZONE AS PERMITTED BY THE APPLICABLE AGREEMENT. HOWEVER, THE PAIR HAS BEEN STABILIZED LONGER THAN EXPECTED AT 108.50, THE CENTRAL BAND/CENTRAL PARITY FOR OVER +/- 2.25 % AS REGULATED. NONETHELESS, THE PAIR HAS BROKEN THE 108.50 AND WILL CONTINUE TO VISIT THE LOWER MEDIUM TERM BAND OF DOWN-TRENDING MEDIUM TERM TREND.
THE CURRENT SHORT TRADE IS PROFITABLE POSITION TO HOLD TO TARGET:
SHORT USDJPY AT 109.10/109.50
STOP LOSS AT 112.50
TARGET 100.00 (910-950 PIPS)
DURATION: 3-5 MONTHS
RISK TYPE: HIGH RISK (INTERIOR MED. TERM TARGET ZONE)
TIME SERIES ANALYSIS SUGGEST THE CURRENT TRADE COULD BE MANAGED AT RISK FREE BY PLACING THE STOP LOSS TO ENTRY RATE, AND TO HOLD TO TARGET (OR TO BE CLOSED AS POSSIBLE TO BE PREFERRED).
HIGH FREQUENCY TRADES NOT RECOMMENDED FOR USDJPY UNTIL RE-ANALYSIS TO BE UNDERTAKEN ON TIME SERIES CURRENCY BAND.