USDJPY----> 113.5

Its trading in a sideways range channel of 400 pips.

IMM futures on yen, huge short position, ripe for hitting those positions with short covering rally. Net short position 69,049 contracts.

In August, the Yen is mostly bearish. Should we short early now or wait? I prefer swing trading.

Bank of China raised reserves requirements...equivalent to an economy getting a kick in the *&@!... which plays straight into this pairing...I wonder if treasury secretary Paulson has something to say?

later...

If your bearish on usd/jpy wait for 116.70 before shorting it, the chart looks like it wants to test that level and fail it to head down.

If you plan on playing the long end of the usdjpy, 116 even is good entry point.

Awesome call Spectre! Got almost 50 PIPs - was long DLR/YEN at 116.20 got out at 70. Good eye my friend...