Is the Yen actually recovering or is this a trap for newbies?

Marcus Vance 35

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Hey guys, beginner trader here and I’m super confused about what’s happening with USD/JPY right now. I saw it dipped down to around 157.94 after that massive spike the other day. Apparently, Tokyo's core inflation just hit 2.7%, which is way above the Bank of Japan's 2% target. I thought higher inflation meant the currency should get stronger because of potential rate hikes, so I was expecting a massive drop on USD/JPY.

But then I read some analyst reports saying the Yen's recovery prospects are still super limited. Ngl, I'm feeling some major FOMO watching these swings, but I'm also terrified of getting absolutely wrecked. I was thinking of scalping some USD/JPY shorts, but now I'm seriously doubting myself. If inflation is hot, why isn't the Yen ripping way stronger?

Is this minor pullback just a trap before the dollar pumps back up, or is the Yen actually starting a real reversal here? How are you experienced mates playing this right now?
 

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