USD/JPY: Back to bad old days with 20 pip ranges

USD/JPY has been ridiculously volatile in recent months, flying around by 300/500 pips session by session. Today we are back to the bad old days of really tight ranges with the pair trading a 20 pip range. Best left alone in my opinion, there will be some silly moves spiking 150/200 pips and then slow sideways trade. Look elsewhere for better pairs to trade.

  1. Greetings, Sean! USD/JPY goes consolidation to break up, in the district 100.21 and in case of the price fixing above, then the next goal 103.43/57. I think it will be connected with the rise in yields on 10-year us bond, I expect growth approximately to the level of 3%

  2. EUR/JPY seems to have died along with it. Pity, as shorting rallies for the last few weeks has been my bread and butter. Have to agree, it might be time to look elsewhere for a while, although I’ll still be keeping an eye out for failure at higher levels.
    Sean, do you know what the current market positioning on EUR/JPY is at the moment? A while ago it was very long but I’m not sure where it’s at currently.

  3. Hi Peter, can’t remember if it was you or not who liked Jim’s stuff at FX Charts but I’ve just had a chat with home and he’s still very bearish EUR/JPY. But like me, he thinks it’s a sell-rally proposition so patience needed

  4. Cheers Sean, The bit I initially latched onto was along the lines of some funds, by memory, holding huge long positions (15b??) and the gate would be very narrow on the way down if they tried to exit in a hurry.

    I’ve had a good run and don’t fancy stretching my luck and giving some back, so I’ll take your advice and bide my time. I don’t really have much conviction one way or the other on USD strength/weakness at the moment, so I think I’ll just muck around with some range trading somewhere for now with fairly light positions. That usually keeps things ticking over for me until the next EUR/JPY pops up and normally don’t have to wait too long.

    BTW, well done on getting your Aussie long trade out of the sick bay. I thought it was looking decidedly iffy there for a while!

Leave a Reply

Your email address will not be published. Required fields are marked *