Flows and Orders/USD/JPY

USD/JPY: I still like the sell-rally play

The market is very long of USD/JPY, according to reports from the big prime brokers, but it’s also safe to say that the market is bullish. There were very large offers near 80.00 earlier in the week and whilst they have remained solid, there has also been no major pullback either.

I think we should allow the bulls to have another big topside push taking out all the heavy offers above 80.00. Then, when the market is long to bursting point, we sell into the rally and wait for the inevitable sell-off whilst trailing stops are triggered. That’s my cunning plan!

  1. Hi Sean! I share your view that the pair is due for a reverse. In terms of entry levels, do you have any suggestions please? Regards!

  2. Hi Lam, no substitute unfortunately for sitting and watching, seeing how mkt develops. That said, I’d like to keep my stop-loss above solid technical resistance 80.60/65 https://www.tradingview.com/x/61gLjQAE/ so perhaps selling any spike up to 8040 with 40/50pip stop? Id definitely wait and see how mkt looks, don’t leave any o/n orders as that’s too dangerous.

  3. Agree with the strategy to sell in the 80.20/40 area for a retracement. The EJ provides more bang for the buck when the EU and UJ directions are aligned as they are now. Just gone long EU, EJ and already long AU.

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