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USDJPY Pain continues!
Today USDJPY hit an all time low against the dollar trading at 75.71! Despite warnings from the BOJ that it would take "decisive action" to limit JPY strength, continued uncertainty out of Europe as a result of the debt crisis is leading to sustained JPY buying.
However as we can see from the retail positioning tool 85.80% of retail traders are LONG USDJPY! Furthermore they have been positioned this way for over a year now! As USDJPY has moved lower this positioning to the long side has continued to gather pace reaching a peak of 86.2% long at one point today.
We continue to maintain our bearish bias (strong short) on the USDJPY as we have done so throughout 2010-2011, however with rumors abound about a BOJ intervention (again) and imminent Euro zone 'decision' of some sort to stem the debt crisis it is likely to be a very interesting week.
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It just shows that Japan has less paper and fewer printing presses than the United States. We're pulling ahead in the money printing race because of this.
Clint it certainly is and judging by how the BOJ have done it in the past it can be at any time.
The question is only when, not if, the BOJ will intervene. But, they are not currency manipulators. Only China manipulates their currency.
I still think BOJ will do the dance, and may be even peg the yen to the dollar.
74.9 or 75.00 will be the trigger for 300-400 push up.
I would go long US against yen, and short euro.
What you say is very sensible and much better trading philosophy then what the article says. It's very odd to read someone who is short and looking at a historic low in their market and they want to maintain the position. Markets reverse; they don't go in one direction for ever.
Wait until oil hits $220...then you'll see pain.
AUDUSD = short
for what target? i was shorting few days ago and this bummer just went up...
any sugestions?