This pair has always been the most difficult to trade in my opinion due to the way it moves. It grinds in one direction, a pip at a time, giving the impression that it isn’t moving at all. Then it will suddenly inject a 300 pip vertical move before reverting to the slow grind again. The problem with this kind of movement is that it’s often times very hard to stop out of a position.
The new flexibility of the Yuan will add to JPY strength and with exporters still sitting in wait for every rally, the pressure should remain on the downside.
