As per the tweet last night – I went long several pairs with consideration of the large upward bounce in JPY and sell off in risk related currencies. AUD/JPY, NZD/JPY as well EUR/JPY CAD/JPY and CHF/JPY producing several hundred pips in profit overnight.
I will do this on occasion – when I see an absolutely “puch you in the face” type trade opportunity. You may choose to follow – or not.
Again, based in the fundamentals – seeing yesterday’s AUD/JPY dip (around 4-500 pips) in the face of Japan’s massive QE program ( only just getting started ) it made perfect sense to get on the right side of that trade.
I’ve more than taken my 2% back from Japan after last weeks loss.
Kong feels better.
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Regarding your thesis on disturbances in the correlations, do you see the euro falling with the dollar?
Trying to trade tomorrows possible correction in gbp/jpy. Took small short position. based on chart 30 min.
No – as the two most widely held currencies on the planet – the move has to be inverse.—-keeping in mind that “trading flat” is also a market dynamic.
One or the other may rise or fall considerably against other currencies – so yes – they can both fall. Of interst take a look at EUR/NZD or AUD – when “risk” is sold……EUR shoots for the moon here.