USD/JPY: Stops triggered but bids reported near 79.25
The short-term market is being squeezed but the macro longs still probably feel safe whilst reported institutional bids 79.25/79.00 are in place. Stops were tripped below 79.50 and 79.40 but my information suggests that most of the tight stops are now done with the next big batch kicking in below 79.00. Nevertheless I remain strongly bearish and see this pair as a definite sell-rally proposition, basically because the market is positioned wrongly coming towards the illiquid end-of-year markets.
I’m reducing my short position slightly and will look to increase again on rallies back towards 79.90, and you can follow this trade in the members section.