Yen weakness looked impulsive; more to come?

I’m on the wrong side of this having sold EUR/JPY yesterday near 132.00. I’m hoping for some early profit taking out of Asia which will give me a chance to reduce my losses. Pairs like AUD/JPY still seem to have a lot of topside potential and I think its probably best if I stay out of the way of this market until I have a better feel for what’s going on.

I certainly wouldn’t be getting bullish USD any time soon, but we could see a healthy dose of risk return to the market, so the Yen crosses are the obvious target. If this happens, I’d expect USD/JPY to stay steady or even edge higher and the main gains to come through the components ie higher AUD/USD.

  1. Sean… thought it was a really weird market today; completely unsure of itself; been watching AUDJPY, USDJPY, AUDCHF, AUDCAD, CADCHF, USDCAD, GBPUSD, GBPCAD, USDCHF, and the likes.

    If there was a true risk aversion (as some suggest – AUDJPY should have been lower?) or if there was USD strength (as patriotically put forth by many of the so called Forex gurus and my countrymen on twitter), should have seen USDCHF much higher!

    This is just a one heck of a confused market. I am also stuck on USDJPY and CADJPY shorts and hoping to get out at some point today on profit taking.

    On the other hand however, I also feel USDx will go much lower with USDCHF around the 0.88-0.89 handle and EURUSD around 1.37. This should drive the JPY pairs lower quite a bit. I think my timing is quite off though and that’s the issue.


  2. Its seems like everybody’s in the trauma board today at the same time…well Sean I made 50 pips going long at 97.7 today (U/J of course), but as I told Mary today I still am Bear for this pair, and until we don’t Break 98.9-99, I will still hold that feeling. I think we will in the near future re-test 96.9, Just a gut feeling! Any clue on inter day trade tips? 98.6 Break seems practical today?

  3. I’m already small short euryen 13210 and looking to sell again 13345 (61.8% Fibo) to average the position. Hopefully then cover some on dips, but not overly confident. Keeping stops tight above there as don’t fancy risking much on this one

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