I sold 70,000 position in GBP/JPY @ 188.68 and currently have 300 pip profit ON A DEMO. Once again I'm using 4 hour candle chart with stochastics. USD/JPY is reall battleground right now with BOJ how are trades going in that one? EUR/JPY is extremely oversold but let the market tell you when to get in. BTW I know this is not a typical gain. This is my second month to be trading a demo. I was trading EUR/USD but got bored and wanted to trade the most expensive pair for fun lol.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
Anyone been trading the hot money going into Japan?
- Thread starter rawman74
- Start date
Quote from rawman74:
I sold 70,000 position in GBP/JPY @ 188.68 and currently have 300 pip profit ON A DEMO. Once again I'm using 4 hour candle chart with stochastics. USD/JPY is reall battleground right now with BOJ how are trades going in that one? EUR/JPY is extremely oversold but let the market tell you when to get in. BTW I know this is not a typical gain. This is my second month to be trading a demo. I was trading EUR/USD but got bored and wanted to trade the most expensive pair for fun lol.
Hi.
I'm from Japan, and I trade EURJPY mainly.
I have shorted and still holding the position. In FX trading, it's hard to say which level is 'oversold'. Even if you see it's oversold in one currency pair on the chart, the other related pair may be not.
For instance, EURJPY = EURUSD * USDJPY. The price move is related each other, so sometimes easy to tell what's going on, sometimes not. JPY bull this time would be the easy case.
I wonder how stochastic analysis does in FX trading. It's for counter trend tool, and FX is very trendly except some currency pair.
Nikkei is solidly bull now traded over 10000 yen.
I have been watching the EWJ (IShares) go up but have not touched them.
closed short now long 90,000 GBP/JPY @ 185.12 although lost half my profit trying to buy at 186.09 hey smoothtrader I read Chinese were intervening in USD/JPY to strengthen dollar along with BOJ whats up with this? Im sure the answer is obvious and Im just too dumb to see it lol btw Elliott Wave has Nikkei rangebound at about 10k for the next year
Quote from rawman74:
closed short now long 90,000 GBP/JPY @ 185.12 although lost half my profit trying to buy at 186.09 hey smoothtrader I read Chinese were intervening in USD/JPY to strengthen dollar along with BOJ whats up with this? Im sure the answer is obvious and Im just too dumb to see it lol
Their touchy about the JPY weakening against the dollar for exports etc, same as US was a while back trying to keep the dollar weak to make their exports cheaper for rest of the world, BOJ kept intervening to stem JPY getting stronger in that case and did a good job of a JPY levitation act when JPY could/should have gone down alot further than it did. One other factor could be so that US goods are more expensive to Japan and Chinas trade is boosted as Japan imports alot from China currently. Since Chinas currency is so tightly controlled and not floated they are not affected directly, but can influence other markets, Chinas prices to Japan and US remain the same, while US gets more expensive to Japan while Japan exports are cheaper to America.
THE CARRY TRADE AND THE LEMMING EFFECT
Because the Fed has pushed down short-term rates by increasing the supply of credit money, and because of falling demand for loans by businessmen, investors in the carry trade can borrow short (1%) and lend long (5%). It looks like easy money. Warning: easy come, easy go.
This process has been going on in Japan for over a decade. It has been going on around the world. People borrow yen at well under 1% per annum, convert these yen into other currencies (mainly the dollar), and buy interest-bearing assets. Itâs all hunky-dory unless the yen moves up, for the borrowers must repay in yen. They must then go into the market and buy the yen they sold earlier. This drives up the price of yen even more. You get the idea. The debtors are trapped. The assets they own (dollars) are falling in value against the assets they owe (yen). The mad scramble begins. Then the bankruptcies begin.
Because the Fed has pushed down short-term rates by increasing the supply of credit money, and because of falling demand for loans by businessmen, investors in the carry trade can borrow short (1%) and lend long (5%). It looks like easy money. Warning: easy come, easy go.
This process has been going on in Japan for over a decade. It has been going on around the world. People borrow yen at well under 1% per annum, convert these yen into other currencies (mainly the dollar), and buy interest-bearing assets. Itâs all hunky-dory unless the yen moves up, for the borrowers must repay in yen. They must then go into the market and buy the yen they sold earlier. This drives up the price of yen even more. You get the idea. The debtors are trapped. The assets they own (dollars) are falling in value against the assets they owe (yen). The mad scramble begins. Then the bankruptcies begin.