Revisiting FxWirePro calls in Dollar/Yen and scope of entry

Yen has been star performer this year and we at FxWirePro can take some pride as our calls gets reached. One of our call hits target today, as Yen rose to 114 per Dollar area.

That was the call to sell USD/JPY at 119.5 area, targeting 114 area and keeping stop loss at 123 area.

We expect market volatility to be persistent this year and as of now, it is not clear what central bankers' might do to suppress volatility. We are not sure, whether there would even be enough will to act as economy is in much better shape in developed world. Only concern remain surrounding low inflation, lower commodity prices and equity selloff/correction.

Our long call for Yen was based on the scenarios that include weakness in financial markets, debt bubble bust in China and emerging market selloffs. However, our call is finding support from another happening, which is weakening of Dollar. This we didn't anticipate as the turmoil was expected to affect yield curve expectations parallel. Nevertheless, this new phenomenon is likely to provide support to our call.

Anyone, who has missed out on the above call, need not worry much as Yen might rise further.

Next targets for Yen lies at 113.1, 111.2, 108.5 and 98.5 against Dollar.

We expect the following area to act as nice resistance -

115.9-116.3, 117.6, 118.1, 121.6.

We recommend yen buyers to continue holding positions and increase at dips.

For today, we expect 115.2-115.8 area to act as resistance.