Rebound in Dollar-Yen pair from the recent low of 100.08 to as high as 104.63 has caught many by surprise. With December Fed rate hike bets already at 70% and stock markets looking wobbly, it is quite a challenge to predict the next move in the pair.
Wilson Leung, Director at Trendsetter FX remains cautiously bullish on Dollar-Yen pair. Leung mentions 107.50 as the key level, breach of which would signal reversal of the interim downtrend from the yearly highs around 121.00.
However, Leung says bears should not lose hope as failure at 107.50 followed by a break below 102.80 levels could result in a much deeper retracement of the rebound from the recent low of 100.08.
This is a must watch segment for Yen traders as Leung supplements technical analysis with fundamental commentary