In previous posts I mentioned the probability for a longer term trend reversal in the USDTRY and EURTRY pairs to the downside. Therefore it is less about the Euro or the Greenback turning weaker but more about a battered down Turkish Lira regaining strength that should as well naturally be reflected in other currency pairs such as TRYJPY.
It actually happens that the pair is close to breaking out of a bottoming pattern above (
31.2) 32.2* TRY/JPY as shown on the weekly price chart. Although the presented chart does not yet comprise today’s price action at the time of posting it is actually fighting its way higher just short of ( 31) 32* TRY/JPY.
Betting on a strengthening Turkish Lira is hitting two targets with one bullet since it is a positive carry trade against low-yield currencies such as the Japanese Yield.
I suggest buying the breakout above (
31.2) 32.2* TRY/JPY with an initial stop loss just below 31,0 TRY/JPY with initial targets at 33.7 and 35.3 TRY/JPY.
*Edited on 10 Sept 2017 as the breakout level mentioned was wrong.