Wednesday, March 03, 2010

Japanese Yen Update



A few weeks ago I was bearish on the Japanese Yen looking for this currency to continue moving lower but as you can see that view was clearly wrong. Today the Japanese Yen made a 2 month high posting its highest close since mid December 2009.

As of now I have no clear opinion on the Japanese Yen as this currency has been in a trading range for the past few months. I will say however that there is no reason to still be short this currency given today's close.

3 comments:

Anonymous said...

now that FXY is back under 112 would you reshort with a stop above Wednesday's highs? Some of the best plays are often false breakouts where everyone has the right position but gets stopped out just before the big move.

thanks!

Kevin said...

I agree with you that sometimes the best plays are when we get a false breakout but in the case of the Yen, I will just leave it alone for now. I'll wait for a better setup to come along.

Eric De Groot said...

The run is not over. Friday's hit, scaped some profit for connected money on the short side. It was well choreographed moved from a predictable playbook. It's only a matter of time before the long side is setup again.

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