The Japanese Yen has been the street punching bag for the past 5 years and the truth is that it is built into every correlational model as a risk off trade.
Just dump USDJPY when you dare not sell other risk ‘cos it’s a safe bet and you aren’t likely to lose much.
Question : What are you buying when you buy JPY?
You are buying a country in recession; you are buying deflation; you are buying one of the most aged population around; you are buying negative returns; you are buying the pioneer of all QE and; you are buying a war dance with the BOJ.
It should be obvious I am not a full time USDJPY trader by now, because none of them talk like this.
I love that country though and it’s not just the food. You will hardly find that sort of stoicism anywhere else.
And so, I am buying USDJPY today. Me versus the lame brain machines. Fighting steel with heart.