Nice shakeout of weak longs that we had just towards the end of the 1st part of the Asia session, along with fairly hefty dip volume buying. Interesting to see a 8 pip range on either side of the POC and buying of any dips. USDJPY's behaviour has definitely changed, and we've not had enough PA yet to understand to what extent it's behaviour has changed; the patterns are so far definitely different - it could well be because the shorting algos are approaching this thing differently now.
And, along with more prominent buying of dips, the algos will adjust their approach; as the interesting write-up on forexlive said, if they run into buyers on a forced dip/selling, their future direction (to buy or sell) will be different. We could well approach 82 first - 81 seems farther away with every failure to dip down, albeit things in UJ unfold much slower, so it's easy to be premature in our human calls. I am buying dips, and scaling out in 10-15 pip intervals until I have reason to do otherwise.
And, along with more prominent buying of dips, the algos will adjust their approach; as the interesting write-up on forexlive said, if they run into buyers on a forced dip/selling, their future direction (to buy or sell) will be different. We could well approach 82 first - 81 seems farther away with every failure to dip down, albeit things in UJ unfold much slower, so it's easy to be premature in our human calls. I am buying dips, and scaling out in 10-15 pip intervals until I have reason to do otherwise.
Attached Image (click to enlarge)
