Sell for 820 pips

The Bank of Japan (BoJ), persistently pursuing an excessively loose monetary policy, has been causing historic losses in the Yen for the past 2 years. There is actually a relatively valid reason behind this loose monetary policy, and the BoJ is deliberately causing the depreciation of the Yen. We will soon publish a detailed analysis and article on this topic.

Although the general trend in the Yen is downwards, we can assess potential corrective movements from technical levels.

The Fibonacci 76.4% level seen on the monthly chart is the final and most significant correction level between the 15-year high and low levels. Additionally, if the price rises to the 112.00 level, which corresponds to the 76.4% level, it will generate a significant overbought signal on the 21-period RSI on daily, weekly, and monthly charts. Furthermore, the Fibonacci expansion at the 161.8% level is the main target level of the upward trend that began at the beginning of 2020, intersecting with the Fibonacci 76.4% retracement level of the main downward trend. This will also trigger algorithms in addition to traders like us. We are not expecting a trend reversal from this level at the moment, but we may see a strong technical correction.

Before making a selling transaction, wait for the price to rise to our expected level of 111.90

Sell Limit: 111.90
Stop Loss: 113.65
Take Profit: 103.70