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  • Dollar slumps to 10-week low versus yen, hedges unwound as Nikkei plunges

    From reuters.com

    The dollar slid to its lowest level against the yen in 10 weeks on Thursday as Japanese shares dived, prompting investors to unwind short bets on the yen amid uncertainty about the Federal Reserve's next move. The dollar fell to as low as 93.90 yen at one point as the Nikkei .N225 tumbled 6.4 percent. It last traded at 94.27 yen, a level not seen since April 4, when the Bank of Japan unleashed an audacious easing program that accelerated the yen's slide. Traders said that a lack of fresh incentives to sell yen and buy stocks - a one-way trade that dominated the market between November and May - was behind early ... (full story)

700 points non stop, this is what train named YEN is capable of
  •  Guest
  • | IP XX.XXX.187.246
In ten trading days the Nikkei fell 3,762 points. Helicopter Ben, are you paying attention?
How low can you go??
Quoting adriantr
How low can you go??
IDK, I have long position today, as well as short eur/usd lets see how it will play out
i have long EJ at 127.54 ahould i wait?
Quoting Azzmirul
i have long EJ at 127.54 ahould i wait?
no, the force behind EJ is still U/J so you should be OK
Quoting Azzmirul
i have long EJ at 127.54 ahould i wait?
If you don't know the answer to that question, you should not be trading currencies.
Quoting Ulterior
no, the force behind EJ is still U/J so you should be OK
What does that mean?

If 125 goes, he's fooked sinking deeper and deeper into the red. If he has no SL, I suggest putting it below 124.80 and pray you get a nice bounce here. This long trade should have been closed with a loss last night as Asia made new lows.

I suggest he reads the following article because I can guarantee Azzmirul is on the same path and the words "I really, really hate losing money" will resonate with him.

http://www.forexfactory.com/news.php?do=news&id=432253
Quoting bbakker
What does that mean?

If 125 goes, he's fooked sinking deeper and deeper into the red. If he has no SL, I suggest putting it below 124.80 and pray you get a nice bounce here. This long trade should have been closed with a loss last night as Asia made new lows.

I suggest he reads the following article because I can guarantee Azzmirul is on the same path and the words "I really, really hate losing money" will resonate with him.

http://www.forexfactory.com/news.php?do=news&id=432253
He has probably a locked position, he wants to unwind the short leg to close the long on zero. What I mean about the force is that U/J leads all J crosses, they do not depend much on they counterparts crosses
90 for USD/JPY Looks a certainty.
Quoting Ulterior
He has probably a locked position, he wants to unwind the short leg to close the long on zero. What I mean about the force is that U/J leads all J crosses, they do not depend much on they counterparts crosses
A negative hedge... how dumb can you be! No retail trader should be trading like that as it instils the unwillingness to take a loss. Losing is part of trading! You have to accept this and until you accept this notion of losing some trades because no one is 100% right, then he will continue to struggle with these markets. How can you be sure he is in a locked position anyway?... it is an assumption on your part!

I agree UJ is the leader but that is because many Japanese financial institutions and their investors generally invest in safe government bonds, usually domestically in the form of Japanese government bonds (JGB) or if internationally, mainly in US Treasuries. Therefore, changes in the yields in these shorter-term bonds are critical to the exchange rate in the USD/JPY as these institutional investors either buy Treasuries therefore converting yen to dollars, or sell Treasuries and convert the dollar proceeds back into yen, so keep an eye on yields as there is correlation between the two.
I think ej will test 124.74......
Quoting silvia77
I think ej will test 124.74......
I think you're right...
Quoting bbakker
I agree UJ is the leader but that is because many Japanese financial institutions and their investors generally invest in safe government bonds, usually domestically in the form of Japanese government bonds (JGB) or if internationally, mainly in US Treasuries. Therefore, changes in the yields in these shorter-term bonds are critical to the exchange rate in the USD/JPY as these institutional investors either buy Treasuries therefore converting yen to dollars, or sell Treasuries and convert the dollar proceeds back into yen, so keep an eye on yields...
US bonds are high so is japan bonds
What are we looking for to know the uj trend beside US employment
usd/jpy come to papa
Quoting Agent3bood
US bonds are high so is japan bonds
What are we looking for to know the uj trend beside US employment
UJ is in a correction phase... Here are my thoughts and my trade on the pair -

http://www.forexfactory.com/showthread.php?p=6747341#post6747341
today usd will jump against all major currency pairs, that means, yen too...
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  • Posted: Jun 13, 2013 4:33am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 17  /  Views: 4,243