Daologic wrote today on the FXStreet.net Daily FX Newsletter:
“Yes, QE is dead, long live QE!, Japanese and ECB style. I am not sure ECB will have the force to engage into a full QE, US or Japanese style. There are legal issues and by default ECB can not buy sovereign bonds in order to finance governments. It will be interesting how ECB will solve this dilemma. You already know what Japan did so I will not talk about it. Be careful with the yen pairs, UJ is heading to 115 first and then to 120. Societé General is asking if the road of UJ to 120 will be a straight line and my answer is no, there are no straight lines in Forex. So, take care of the Yen pairs and buy them on dips or buy breakouts from consolidations. If you want to logically explain all movements in forex you will see that is all about breakouts from different levels and different consolidation areas.”
After hitting the target at 115.80, which is the second target of a very large weekly extension long from 94, I anticipate a retrace at least into the next extension measured move long. As soon as price will get there, we will know where the “dips” will be located (they could fall around the 108-110 area).
I have anticipated the move to 115 in my article published on August 1st on FXStreet.com.
In that article I have mad a fundamental analysis on the Japanese Economy that confirmed the setup that was already in place and mentioned the two targets 108 (already hit) and 115.80 which will soon be hit.
You can read it here below.
Let me know what you think about it.
Have a good day.