The USD has been on a bullish track against the EUR and the GBP for some months now. Sentiment, if not positioning, is also turning bullish against the traditional funding currencies like the CHF and the JPY and the high yielders like the AUD.
USD/JPY should be buy-dips proposition when considered purely as a USD trade but it’s also got the added complication of the JPY crosses to deal with. From this latter perspective, USD/JPY is a sell-rallies proposition.
I’d suggest picking a fairly broad 10 big figure range and trading the edges of that. Short/term sentiment will be dependent on whether the USD story or the risk-aversion story is the dominant theme of the moment.
