FXWW News/Trade Ideas/USD/JPY

USD/JPY: Plenty of sideways trade

  • Fed tapering and BOJ expansion ensure a bullish set-up for USD/JPY;
  • But, the market is already very long;
  • And, risk aversion across Asia is encouraging JPY buying.

More sideways trade ahead but we cannot ignore the fundamentals or the positioning. I think we may get a downside clean-out fairly soon when longs lose patience but be prepared to buy that big dip in line with fundamentals.

  1. Hey Sean, this pair seems stuck, once it went below 97 it hasnt been able to breach 97.45, and as for the Nikkei it wentSouth as i wanted at the 13400 range and has pretty much stayed stable their, but the Nikkei looks bear from my view and especially if it gets below 13300 once i think at that point it will plunge a few hundred points, or maybe thats my wishful thinking, but thats my view! Yesterday i went short a 97.75 and closed it at 97, and I really want to trade but down know which way to go, any suggestions, or just wait it out…

  2. You said, just wait, you will get 1 or 2 opportunities during day to make 50/75 pips like you did yesterday and that’s way to trade it imho. Don’t chase it and don’t be too overburdened with an ‘opinion’, be prepared to buy or sell

  3. Thanks Sean! Probably the best trading advise i’ve heard in a while, i always end up picking a side, either buy or sell, this one factor has probably been the most devastating for my trades, although since reading your blog I really have started keeping an open mind, and treat my trades as a formal business, I dont care if I Buy or Sell, I just want it to be profitable at the end of the day! But your Positive Reinforcement is a necessity!

  4. After 27 years I still get emotionally attached to certain directions, guess its just human psychology, but definitely when I’m trading best I’m open to all possibilities. I also think its good that you are sticking to one pair, too many new traders try and trade multiple pairs. In the banks they have teams of traders each one with a speciality pair; this is a good model. Good luck++

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