Flows and Orders/FXWW News/JPY crosses/Trade Ideas/USD/JPY

USD/JPY: Still looks likely to test important levels at .9340 and below

  • Obviously much will depend on the FOMC language but ‘risk-off’ sentiment remains dominant in the FX market so I’m still tending towards the view that we will see a test of technical levels starting at .9340.
  • The Yen crosses were not a big event yesterday.
  • I think its important to note what happened to the Yen last week when one of the big macro funds unwound positions across all financial markets; the Yen rose sharply. If the FOMC leads to more macro funds dumping positions then the Yen will likely rise sharply again.
  1. Morning Sean! With FOMC looming, are you still holding any postions? Do you think USD will weaken or strengthen after Ben? I really have no clue where we’ll be 24 hours later…

  2. Hey Jasper, just small short EUR/GBP from last night, abt 35 pips out of the money. I’ve gotten my last few trades wrong so not feeling in sync with mkt. Will keep risk super small until the lights come back on again

  3. Hi Sean,

    I am still holding my long position on USD/JPY at 94.20 with SL 91.00 (will be adjusted to 92.00 in the near) to target 117.00/118.00 (Global Macro Trend Strategy).

    The quarterly band already aligned from 91.00 to 92.00 and I predict the quarterly band to align to 93.00 by next week to put my SL at the very strong to hold to target. The SL will be managed to risk free up to protected profit at which time I will be able to add more position.

    Any suggestion?

  4. Sounds like a well thought out strategy Johanes. I like the idea of keeping your stop well below the mkt in case of spikes lower. Also makes excellent sense to then raise the stop eventually. Definitely a trader’s strategy so best of luck. You will get plenty of trades right and wrong but if you stick to solid strategies like this then you will do very well over time I’m sure

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