FXWW News/Trade Ideas/USD/JPY

USD/JPY seeing plenty of pre-weekend long-liquidation

Overnight lows at 98.90 have been breached and the next main level of technical support is at 98.25. The sharp sell-off reaction in late NY trade to the WSJ piece obviously inferred that the market is long and uncomfortable, and that status still hasn’t been undone judging by today’s price action.

Selling short-term rallies still favoured here.

  1. Hi Sean,

    Only half related to your comments, each time I hear the word “taper” I get stomach ache. The problem I see is that Bernanke made it crystal clear that there will be no reduction in bond purchases into the end of the year, barring spectacular employment numbers. However, the market is long dollar and eventually it will dawn even on the dumbest and slowest buy side portfolio manager that they need to reduce dollar longs. Anyone who trades the dollar from the long side, other than for short-term spec, has not read nor understood Ben’s communique. Of course there are a 1000 and 1 differing opinions in the market at any time which I am very grateful for but I just do not see how with every little move people jump out of the rabbit hole and proclaim an end to the FED propping up the market. Its not gonna happen until fundamentals look not just a notch better but make significant advances. Those are my thoughts.

  2. Hi Sean,

    This morning, it’s nice to see AUD/USD at this level 😉 . I guess, the range levels for today (European session) could be [9320,9220] ??

  3. Yes I think that will cover it initially, watch the AUD crosses as well as I think the first indication that the AUD/USD is about to break higher will come thru a lower EUR/AUD or higher AUD/NZD

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