The USD/JPY closed last week below 106.30 which is a very important level considering the rally from the 100.530 level from last week. the 106.30 was… is our bul bear zone because not only it has been a zone of high volume but it also is a structure level that has been tested strongly in the past. Having said that the USD/JPY has been in a very clean down channel for quite a while and it has been testing and breaking levels very cleanly too. The expectation of more easing coming out of the BoJ weakened the Yen but Governor Kuroda put a stop to helicopter money (thank god) at the end of last week which stopped this rally right a a very important technical point: 161.8% extensions from the last leg down, 61.8% of the 111.09-98.90 move and the 38.2%of the entire move to the down side (white channel). What we see here is sellers stepping in on a technical level, buyers closing theirs longs on technicals too and fundamentally speaking the USD/JPY erasing some of the gains of the last 743 rally. We are bearish on the Yen so we are looking to buy the USD/JPY on this dip. The levels to look for next week: – 103.230 / 61.8% / 1272% area of support – 100.530 lows of the move We need to take into consideration the heavy US dat week ahead, which can bring the desire bullishness to this currency pair. Not only we have the the Markit PMI, new home sales and consumer confidence on Tuesday but we have the monetary policy statement and the interest rate decision, which means that the USD/JPY has 2 days to drop 288 pips to that sweet spot before the upcoming US data / US Dollar starts to drive price. A rate hike by the fed is unlikely at this meeting and the monetary policy is likely to be maintained. Kuroda on Saturday: “We have said we will check risks in the economy and prices and expand monetary stimulus if it’s needed to achieve our price stability target at the earliest time possible” “If the words ‘helicopter money’ mean the direct underwriting of government debt or managing fiscal and monetary policy as one consolidated measure, that is forbidden in developed nations — including Japan — from the lessons of history” Orlando Gutierrez Orlando Gutierrez Orlando has been involved in the markets for about six years starting up as a retail trader and now is the Head Trader at www.snipethetrade.com. Orlando has mentored a vast amount of beginner traders and sent them into the technical analysis of price action path; some of them are now part time traders making a second income for themselves. He has also collaborated with the best trading academies as a Forex Specialist and Currency Analyst. He is a strong believer in passing knowledge around to people that truly care about it, and this is why he still posts market analysis regularly on the biggest trading forums and trading schools. View All Post By Orlando Gutierrez Daily Look share Read Next German IFO Business Climate beats expectations with 108.3 – Yohay Elam 5 years The USD/JPY closed last week below 106.30 which is a very important level considering the rally from the 100.530 level from last week. the 106.30 was... is our bul bear zone because not only it has been a zone of high volume but it also is a structure level that has been tested strongly in the past. Having said that the USD/JPY has been in a very clean down channel for quite a while and it has been testing and breaking levels very cleanly too. The expectation of more easing coming out of the BoJ weakened the Yen but Governor… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.