Usd/jpy

It's been riding the cottails of EUR/JPY for a while now. I was long on the USD/JPY last night, bought at 115.93, and closed out at 116.41 (limit was 116.50, but I saw significant resistance above the 116.30 range and EUR may be weakening across the board).
 
Quote from Chood:

. . . YEN strength gains synergy if, and to the extent, foreign buyers of Japanese equities take profits. . . And if YEN strength accelerates, Nikkei exporter component loses luster, fueling more profit taking in equities.

It's a matter of watching and waiting. . .
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CME Nikkei 225 backed up today, despite expectation of hot USA jobs number tomorrow (which, conventionally, should be positive for Nikkei exporter component). The ledge maybe? YEN strength would amplify.
 
I got out at 115.95. There was a time when it was above my price. So I placed a stop about 6 hours before the release of NFP on Friday.
 
Executing Leg B of strategy below tonight by buying 2 to 3 near month YEN future at and under .008750, avg in 8745 (if all three), stops to be set 55 to 65 ticks below 8750.

Leg A of strategy, shorting CME near month Nikkei 225, to start tomorrow, assuming nothing startling in the equities tonight.

Quote from Chood:

Just an observation -- no wampum behind it, not yet: tonight's hot from the gate start of the Nikkei 225, a carrying through of a fantastically feastful second half 2005, may be illusory. I mention that in this thread because YEN strength gains synergy if, and to the extent, foreign buyers of Japanese equities take profits. They unwind YEN hedges in the process -- a factor pointed out to me by another poster. And if YEN strength accelerates, Nikkei exporter component loses luster, fueling more profit taking in equities. It's a chicken or egg view, I know, but from it, I'll be looking either or both to short the Nikkei 225 (on CME only) and to buy YEN (Globex).

It's a matter of watching and waiting. I note as an aside that I've been bullish on the Nikkei since late June 2005 (with posts in real time to show it), so I don't raise this possibility lightly.

This thread still may have legs, which is why I put this comment up for consideration.
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Quote from Chood:

Executing Leg B of strategy below tonight by buying 2 to 3 near month YEN future at and under .008750, avg in 8745 (if all three), stops to be set 55 to 65 ticks below 8750.

Leg A of strategy, shorting CME near month Nikkei 225, to start tomorrow, assuming nothing startling in the equities tonight.
More...

Leg A, with today's price action, finally opening some profit daylight over cruddy, poorly-timed, and wrongly-sequenced Leg B, which was stopped out intraday same session started (Tuesday).
 
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