Long or Short: Short
Entry Point: 97.80 (when consolidation breaks to the downside)
Stop Loss: 98.70
Profit Target: 97.00 (and beyond)
Risk Ratio: Depends on where you exit
Risk involved: 2% of account
Indicators: None
Rationale:
BOJ recently upgraded their economic and inflation forecasts. With the U.S. struggling to get back on their feet and the weaknesses found it its economy, I think this is a good case of “buy strong, sell weak.” Now, I’m not saying that the Japanese economy is doing well, but the BOJ seems to think so, and that should be more than enough to push the USD/JPY bears to sell.
Technically, I like the whole medium-term downtrend. Price is also consolidating at the 50% Fib. A break down should take the pair back down to the former lows.