USD/JPY Trend Remains Uncertain Amid Stability
The USD/JPY pair has stabilized around its 200-day EMA after forming a hammer on Monday, but Christopher Lewis warns that breaking below 154 could completely break the trend.
According to Lewis, who has been long in this market for months, the interest rate differential still favors the US by over 3.5%, making it a profitable position to hold despite potential carry trade risks.
Lewis notes that while there are concerns about the markets pushing back against the trend, he believes the longer-term outlook for Japan will prevail, and the yen will ultimately be 'obliterated'.