It’s all about end-of-quarter currency demand today and dealers are expecting some decent demand for the JPY at the Tokyo fix, starting shortly. Hence the modest strengthening of the Yen in the last hour of trade.
If you expect to have decent demand for JPY why would you recommend EUR/JPY buy?
Yeah, I didn’t think it would move the markets too much, as I figured most of the yen re-balancing was over with. But I did take basically the same trade that you did, long EUR/JPY from 99.99. I’m a bit afraid of the AUD being what could really screw us in this trade though, obviously through the movements in EUR/AUD, which looks like it has been forming a bear flag that should break down fairly soon.
And Boom! It broke down as I was typing the previous post, lol. Oh well, if our EUR/JPY trades don’t work out we will at least have the satisfaction of knowing that great minds think alike! 🙂 Cheers Sean
Hi Vlad, there are so many flows on a daily basis that I tend to try and ignore them when coming up with trade views. Flows like this are maybe good for 15/25 pips and that presumes that you have perfect info and get in exactly as the flow starts, which is very difficult
All just noise at moment Zach, wait until the European big hitters come in and we may see some movement pre-Spanish announcements
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