It's because investors and traders are beginning to realize there will be soon be a shortage of yen to buy at these low prices. That is why you are now seeing 100 point gaps in a blink of an eye daily. At least one major bank/analyst is also recommending a strong yen buy. Watch what happens after the upcoming G-7 meeting in April. It will be trading at 100.00 thereafter. Sam
Illiquid, you got it wrong. If you go long the yen - it spikes a 100 points in a second or so - you are looking at massive profit. This is the trend until it reaches 100.00. BOJ doesn't NEED a strategy - they are now ruling the globe thru setting and "adjusting" currency prices as they please, making the yen the most powerful currency in the world. Sam
That is true if one went long near the lows, but what if you went long at 107, 109 etc? Could you stand getting stopped out around 112, then seeing it bounce back to 110 in 2 separate quick spikes? I think you'd be a bit wary about getting in again.
I tried going long a few times in between 109-111, last entry was 112 and holding. I'm bullish on Yen but realize BOJ can print all the yen it likes until it turns into confetti. Quite a wild day today in all majors.
OK, so if you are short USD/JPY at 112, then you are doing great! Hopefully, you didn't take out too large a position. I opened a short USD/JPY 100K @ 111.05 but had to reduce it prematurely because for my acct size it added up to 200K total position units - I was WAY over-exposed. You should do fine as long as your trade size is in right proportion to your acct. You can either watch for the next 100 point spike down (so far happening each day this week between 12:00PM and 3PM EST) and take profit or you can hold til the end of the month and take more profit. All my indicators point to a downward trend (yen strengthening / usd weakening - spike meltdown) at least through April. Let me know how it goes. The trick here apparently is to short these yen spikes lightly so you can ride out a major spike - going back to 1984 I counted one spike that went up 1440 points but that was not during a USD downward trend. It too eventually went down. Within a USD downward trend, this current spike is the largest one I have come across. I entered it (recommendation of a friend - who got bagged on it) thinking it was going to 106.50 MAX then tank. Fortunately I traded microscopic amounts instantly incurring a drawdown as planned - then later shorted heavier as it went up. Been comfortably holding a 200 (and fluctuating) point drawdown presently - average price 109.30. Looking forward to a TP between 105.30 and 100.00 It's taking a longer time than I had hoped for but there definitely is a downward trend now to the spike. It just broke a 3 hour and a 1 day channel. Sam
of my screen ... want no part of this .... zippy stuff .. good luck to all who have the guts to trade against the BOJ thank god I did not trade JPY today for a scalp would have been scalped :eek:
Hey Seth, yeah, a good trade is: once the dust settles on all this grappling with the USD/YEN traders are gunna want to instictively park their money while they lick their wounds. Therefore take a long AUD/USD position and hold for a while. It pays top interest. Traders will soon head to AUD. Probably AUD/USD or AUD/JPY. I just took an AUD/JPY position that immediately went into profit where I closed it. I'm keeping my long AUD/USD until the meltdown is done on USD/JPY. Cheers! Sam