USD/JPY risk on continues
|Equities across Asia and Europe paired back losses across the board the last two days, but have recovered in the latter part of trading today. This risk-on market behaviour leads JPY weakness. USD strength continues as we have seen strong Advance GDP quarterly data today. Long UJ is recommended, but be mindful USD strength could reverse at the end of this month due to profit taking.
Technically we can see a steep uptrend line that could be broken on profit taking. It is always best to wait for a pullback then jump on a freight train. POC zone to watch is 104.65-80 (61.8, EMA89, trend line, L4). Targets are 105.57 and 105.85. Only a 4h close or 1h momentum above 105.85 will target 106.35.
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