USD/JPY has broken critical resistance at 82.80/85 and taken out the barriers at 83.00. If long this sucker from a good level, I’d set a stop around 82.75 and walk away for a few days.
Technically it looks like it wants to make a run at the February highs of 84.18, at least. But if you are a short-term punter, and many of you are, a really quick punt to the downside may be the way to play near-term.
The market had to do a lot of heavy lifting to clear 83.00 and is likely to be left with a case of indigestion. The Fed is sure to do more QE, but they won’t do anymore than the $85 billion per month that the market has priced in, so the best of the Fed is fully priced in. I’d take a small short, looking for a dip back to the 82.85/90 area. Keep stops really tight. 83.35 or so.
If this trade does not play out in the next few hours, run, do not walk for the exits. It is a risky, counter-trend trade, something I rarely recommend. USD/JPY trades at 83.16.
