USDJPY long term charts

Patrick Reid

My final trip down memory lane to complete the DXY components. Here are two charts and both show the importance of 100 and 101. hashtag#USDJPY and why this pair is being strange at the moment. The reason could be BOJ/MOF hedging via Japan's largest pension fund. The bottom line is USDJPY is largely responsible for all JPY pairs being stuck with tight ranges. Look at EURJPY for example - despite the weakness and subsequent moves in equities. This is NOT normal. USDJPY should not be this high. Just my two cents of course. Now back to the charts. I traded the US Election when Hilary "lost" in the markets view for risk. Let's be factual - she didn't lose anything because she was't president beforehand. It's just a small fact. Trump won but we rallied because of his victory speech and we never looked back. What the macro guys do not tell you is the coincidence of levels. 100 and 101 area is where the 200 and 100 Monthly Moving Averages meet. Do you remember USDJPY at 263 ? The Plaza Accord might know this level. Just saying. Have a beautiful Christmas