USD/JPY
After a long weekend UK and US traders are coming back to their desks to find USD/JPY being offered. Treasury yields are down across the board. The Nikkei is down 0.79% at time of writing and Bullard has been on the wires pointing out reasons for the Fed to be cautious in raising interest rates. Check out Justin's comments here. The dollar index is also down.
With nothing else major on the news front today we could see further USD/JPY weakness into the next session. I favour a pullback into the 50% fib area around 109.35 with stops above recent highs at 109.84. Target is 100% extension of the Fib level.
Risks to the trade: Any unexpected news on the wires that is bullish for the USD.