By Jeremy Boulton — Jan 28 - 02:48 AM
• Traders have sold USD/JPY before and after Jan 24 BOJ meeting
• Pair dropped from 158.88 on Jan 10 to 153.72 on Jan 27
• Highly likely that traders have flipped to a net short position
• On Jan 27 USD/JPY slumped 156.25 to 153.72
• Should the pair now rise over Jan 27 it will force traders to adjust
• Potentially the rally could reach 164
• USD/JPY is supported by both U.S. and Japanese monetary policy
• Traders selling dollars may hay sprung a bear trap
(Jeremy Boulton is a Reuters market analyst. The views expressed are his own)
Source:
London Stock Exchange Group | Thomson Reuters