Japanese standing orders still huge in USD/JPY

Massive selling of USD/JPY by leveraged funds ahead of the G20 on Friday was easily soaked up by Japanese institutions as they try to unwind huge hedge positions.
It seems that we now know what the G20 is likely or unlikely to say so the danger is now back to the topside.
We might still get some 200 pip dips but any such dips will meet with huge bids.

  1. Hello Sean, just a quick question? On weekly charts RSI is above 87 and is extremely over bought. I am long from lower levels (87) but seeing this extreme RSI, I second guess myself – if I need to take profits. Timing is always a problem. With all fundamentals pointing higher usd/jpy do I even care abt RSI anymore?

  2. Good point George, the market can stay on overbought technicals for many many sessions and could run for 3 or 5 big figs despite the o/b signal. I would only start heeding the techs if something changes in the market ie G20 says something etc and then you need to be real quick in booking profits

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