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Lucas: Why I’m still buying USDJPY

Weakness in the Yen escalated on Tuesday after Japanese Prime Minister Shinzo Abe delayed a scheduled tax hike and called for a snap election. According to Steve Lucas from 3c Analysis these factors will push JPY lower. He says a strong dollar is also playing its part but is not the only factor pushing USDJPY to new seven year highs. As Steve points out, “we are not just talking about a dollar strength but also yen weakness.”

The Japanese economy recently moved into a recession after reporting a 1.6% contraction in the economy. With the Asian market posting a new seven year high for USDJPY in early trading on Wednesday, Steve is targeting higher levels for the currency pair.

Steve is looking to buy USDJPY modestly at the market open and again at USD 117.08. He is targeting a move towards USD 118.00 and USD 119.00. A stop can be placed at USD 116.71.

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01:20 minutes
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