Comments on: Hedge funds getting stuck into USD/JPY

By: Sam

Sam — Thu, 25 Oct 2012 10:46:52 +0000

Thanks Sean. I waited for the pullback below 79.5 but it never came. I don’t see much in the way until 83-85 level once it clears the trendline resistance. You certainly have a point regarding the heavy long positions. But if you take a look at early Febuary to March run, you will see why I think this one is tradable.

By: Sean Lee

Sean Lee — Thu, 25 Oct 2012 09:56:37 +0000

Hey Sam, I think buying dips is a fair strategy in USD/JPY and I think there will be sharp dip pretty soon once bulls get overly filled up. So certainly prefer buying dips to chasing this move higher, which I think is a mistake.

By: Sam

Sam — Thu, 25 Oct 2012 09:41:17 +0000

I’m planning to setup a long position if I see a clear break of trend line resistance nearby w/ stop loss below 79.
Are you still in favor of selling rally? I’ll think it over if you advise strongly against it. 🙂
btw are the rumored 80.25 and 80.5 barriers true?

By: Sean Lee

Sean Lee — Thu, 25 Oct 2012 09:09:59 +0000

Good point Sam, you could well be right

By: Sam

Sam — Thu, 25 Oct 2012 09:07:49 +0000

Sean, the interesting thing is the way USDJPY moves. Once it breaks 200Day MA @79.43 level, it never bothered to look back. Retracement is tight and well contained at 79.7. It’s like a heavy truck runs in first gear, slow yet powerful. It smashes everything in its way.
Guess I’m so used to up and downs in Euro and Aussie. I’m a bit of suprised USDJPY moving like this. I think this one might have some legs.

By: Iridium

Iridium — Thu, 25 Oct 2012 05:54:20 +0000

Poor hedge funds, getting sucked into another most likely head fake (o Shirakawa show me your big nasty quadrilions of QE! :-))