You can see that the dollar/yen started to rally a bit during the trading session on Wednesday as we continue to threaten the 152 yen level. This is an area that I think a lot of people are going to be paying attention to. And if we can break above there, it’s likely that market participants will really start to rush in in more of a fear of missing out trade. I do think that ultimately this is exactly what happens because quite frankly, the Bank of Japan raising interest rates to zero really isn’t helping much.
With that being the case, I think it’s only a matter of time before we get that forceful breakout and once we break above the 152 yen level, I am more than willing to start buying even more than I already have, but short-term pullbacks should continue to be buying opportunities in this market and that’s how you have to look at it. Ultimately, this is a scenario where it’s a one-way trade due to the fact that the interest rate differential gets you paid at the end of every session.
