The technical head-and-shoulders formation on the daily USDJPY chart has prompted us to consider shorting USDJPY.
Neckline break at 96.50 earlier today suggests that a 89.60 target is possible medium-term
Momentum indicators are currently pointing lower
Retail Japan currently has biggest long USDJPY exposure in the last 6 months. Time for a shake-out?
Risk - Appetite for risk extends on improving global outlook, S&P risies to 1,000+
As such, we suggest selling 1/2 position now (96.45), adding to the position on any retracement back to 97.25 with a stop on the whole position above 98.20. Initial target 93.00 then 90.00.
Source from Saxo Capital Markets