Longer term JPY positions likely to be tested today
Forget about fundamentals, once the market gets a nasty shock the obvious reaction is to scale back on all open positions and exposure. One of the biggest positions in the market is short JPY and these positions could be tested in today’s conditions.
I’m not taking any positions but I’m definitely looking at trading the Yen crosses with a bearish intraday bias. These markets are made for swing traders, not position takers. It would not surprise me at all if USD/JPY were trading below 113.00 before the day is out, after all look where USD/CHF was yesterday!