FxWirePro: Yen looks to gain over further risk aversion, might reach 114.5 area

Recent price action on world's equity markets, and bids on Yen indicating that Bears are still hovering. Concerns over further slowdown in China hasn't totally ebbed and it is going to be the hottest topic in this week's G20 leaders' summit followed by rate hike bets by US Federal Reserve.

Yen is now trapped under two forces, while central banks' policy divergence is likely to push Yen against Dollar, for which we had initiated long call few days back to target area of 124.5 and with stop around 116, recent low and critical support.

Though our call hasn't soured as stop loss remains quite far, we are temporarily withdrawing the call looking at recent price action and better risk reward.

Trade idea 

• Sell USD/JPY with target around 114.5 area and stop loss around 121.6-122 area. We are expecting further turmoil in financial market.

Kindly note we are not in favor of this position beyond stop loss if risk aversion subsides.