The Yen snap back

Not long ago, check my blog on "The Grey Rhinos" which has mentioned already that the Yen isn't going to keep on losing value, it might just snap back one day.

It surely did yesterday when BoJ decided to move the trade range yield of 10yr Japanese government bonds to 0.5% mid range instead of 0.25% as its mid range guidance.

What would then happen from now on?

It has already fallen from the top of 150 to 131 yesterday, the decline of which is quite sizable.  It might climb back up to form a head and shoulder pattern ie forming the right shoulder so that the fall could be even more significant in the months ahead.

The carry trade is going to turn into losses if covering the yen short isn't swift and hard.

Take note of the YEN movements and long the YEN on any shoot up of the USDJPY.