Look, its hard to recommend shorting something which you are long-term bullish. But given the current geopolitical situation happening around (I'm talking about the ousting of royals in Saudi Arabia over the weekend) and Kuroda's affirmation that there will not be any stimulus coming, we can expect the pair to move down lower. Do also note that the pair is also a proxy for safe-haven assets, the markets may be looking at protecting their portfolio against any selloff.
The reason I'm saying this is because the equities market are probably overpriced and due for a correction. I am personally short in a couple of cyclical stocks, while long in safe haven assets.
Going onto technicals, we can see that the pair has hit a downtrend line. It has also been moving up sideways since October, signalling a weakened rally. We are also able to locate significant resistance 114.30-50, based on price action in May and July 2017. With this, I am able to justify a short on the pair, with a final target at around 110.20. I would take some profit as the pair moves down, but expect myself to be out by 110.20.
Cheers guys, happy trading. Follow me on houtiantan.com I trade with bit.ly/AxiFXSG
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Continued to add position as the currency pair moves lower.