On the USD side, we have dollar devaluation in play via Fed flooding the supply side and marking the monthly highs in Dollar:
On the JPY side, I am looking for an eventful year on the risk front. Japan will benefit in search of safety with late cycle fears only temporarily abating:
On the technical side, for those in a background with waves and wanting to dig deeper into the legs we are trading:
Even with yield advantage over JGBs I expect risk to control the flows in particular as we get close to US elections providing a choppy zig zag. There will be good demand for USDJPY below 105 (as Japanese investors have been riding the pig overseas) so look to take partial profits on the way, 100 remains my final target in the flow. Best of luck all those in USDJPY and positioning for 2020 flows - you can see other strategies below!
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