USD JPY seems to be creating an upward sloping symmetrical triangle with Craddle forming at 170 level somewhere close to US election time.
Short term view - pair will breach 160 level and trade in ranges between 160-165. Subject to BOJ tone next week.
Medium term view - FOMC rate cut & expected BOJ rate hike could negate the USD strength, however the fundamentals would still signal a strong USD on back of higher USD yields compared to JPY.
Long term view - Long IR rate divergence is expected to Narrow with Fed rate cuts being priced in and BOJ expected to hike the rates which would lead to USD weakening vs JPY. After USD peaks around 170 levels Long term Short USDJPY could be a trade to watch out for.
Short term view - pair will breach 160 level and trade in ranges between 160-165. Subject to BOJ tone next week.
Medium term view - FOMC rate cut & expected BOJ rate hike could negate the USD strength, however the fundamentals would still signal a strong USD on back of higher USD yields compared to JPY.
Long term view - Long IR rate divergence is expected to Narrow with Fed rate cuts being priced in and BOJ expected to hike the rates which would lead to USD weakening vs JPY. After USD peaks around 170 levels Long term Short USDJPY could be a trade to watch out for.