mercoledì 29 gennaio 2014

Re-entered yen pairs hedge

Re-entered yen pairs hedgeJanuary 29, 201420.32 gmtI’ve been watching the price action closely since the FOMC statement was published, and it looks to me that there is a strong desire to push UJ and SP500 lower. These two are so closely correlated, it is incredible. They move in lock-step, almost pip for pip, at least in the US session. I have therefore re-entered my shorts as follows:USDJPY short $15/pip at 102.11GBPJPY: short $10/pip at 169.11I never trade the 5 or 15 minute charts, but I sometimes watch them to get a feel for where the buyers and sellers are stepping in. I’ve been watching the 5 min charts in UJ and GJ and SP500 and my gut feel is that the downward pressure has not abated …

via Zen and the Art of FX Trading:

20.32 gmt

I’ve been watching the price action closely since the FOMC statement was published, and it looks to me that there is a strong desire to push UJ and SP500 lower. These two are so closely correlated, it is incredible. They move in lock-step, almost pip for pip, at least in the US session. I have therefore re-entered my shorts as follows:

USDJPY short $15/pip at 102.11

GBPJPY: short $10/pip at 169.11

I never trade the 5 or 15 minute charts, but I sometimes watch them to get a feel for where the buyers and sellers are stepping in. I’ve been watching the 5 min charts in UJ and GJ and SP500 and my gut feel is that the downward pressure has not abated yet. Even though the FOMC statement was actually less dovish than before and therefore supportive of UJ strength, the sellers seem more powerful than buyers. If all the stops around 101.80 are taken out, the downside risk is large, down to perhaps testing 100. Therefore I think it prudent to keep the hedge until the bullish direction is clearly established.