The market totally ignores all economic data out of Japan. The economic situation in Japan isn’t improving very quickly but when the alternative to buying JPY is buying EUR, GBP or USD, then it’s just another ugly contest. The technical picture for USD/JPY isn’t any clearer with the long term downtrend still in control but having totally run out of momentum.
I guess that leaves us with only one strategy choice, range trading. Pick a range which you don’t think this pair will trade outside and then trade the edges of that range. 88/98 or 86/96 look like the obvious candidates to me but I’m leaving it alone. I don’t have the patience.
