JPY crosses/USD/JPY

Yen trend stays strong: Problem is you won’t want them once it starts dipping!

Nobody ever claimed that trading is easy. The Yen trend of recent weeks is very strong indeed but as we know the market is already quite short. Pullbacks have been minimal so if you want to start trading these moves, you are forced into buying the Yen crosses at or close to recent highs. The problem with this type of trend, where the market is positioned one way, is that once it starts falling it will be very difficult to stop as trailing stops pile on top of more trailing stops.

Not the normal way of trading I know, but don’t buy dips or sell rallies in vertical trends. If you want to be long then bite the bullet and buy into the market, adding your tight trailing stop in with everyone else. If you want to be short, wait for the turn and then start selling into the trailing-stop zones.

Its been fairly quiet for the last 12 hours or so but surely we are due for some more pre-election volatility.

May the luck be with you++

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