north korean panic ensues..

Hey all, check out what EUR/JPY is doing right now, North Korea just tested that nuke. I'm in it long, have to get back to my stupid fundamental trade to see where to exit!

Somebody said "fundamentals don't work". LOL, I have nothing but a naked chart and CNN going right now!

Based on this breaking news, why would you long? What makes you long because N Korea has tested a nuke as opposed to short? I saw the news, but didn't know which way it would move the market. I'm ignorant to fundamentals.

Thanks

Long on EUR/JPY means I expect yen to weaken, I'm actually shorting yen when I buy that pair...

BTW, the spike appears to be over now, but 30 pips in 30 minutes ain't bad. This will affect yen in the long term, if yen goes over about 119.40 USD look for 121 within a few weeks...

I seriously doubt they did. There was no seismic activity that was detected by anyone in the last 48 hours. Trust me, if it went off, we'd know.

It would be totally expected that they would use their media which they control to say they actually set one off in order for them to continue to look powerful and in control in front of the international community and their own people.

Usual communist tactics.

All I know is it caused a hell of a price spike! It caused all kinds of apesh*t seismic activity on the currency charts!

Also, there is speculation that they attempted to mask the seismic effects, maybe, maybe not. I can't wait for the London open, though! How's that for a reversal, Mr. Trend?

I'll be holding a smaller longer-term long position on USD/JPY also, this is just starting. UN Security Council is holding an emergency session right now. Why can't we trade South Korean Won?

Well you're right to an extent -- as long as you're taking profit early. I just wouldn't trust anything coming out of the DPRK's mouth unless you can find multiple confirmations from seismic activity reports. I use news.google.com myself and I've been watching this situation all weekend.

As long as London decides to buy the crap out of the USD, I'm a happy camper, which is what I suspect will happen should we get additional confirmation that it did indeed happen. I would expect gold to rise more than the dollar, however.

There is a lot of confirmation coming in now, man, and when all those Brit bankers wake up and hear this while eating their crumpets riding the metro, they'll be planning on sending this thing even more haywire. I'm just waiting around with a small long planning on entries later tonight based on both news and light technicals to analyze the steam in these moves...

CNN: South Korean gov't says N. Korean test measured 3.6 on Richter scale...

From CNN:
"The U.S. Geological Survey's Rafael Abreau said the earthquake-measuring agency has not recorded any seismic activity from North Korea.

However, South Korean intelligence officials said a seismic wave of magnitude-3.58 had been detected in North Hamkyung province, according to Yonhap."

Gez, do you have ESPN? Or is it ESP?

USD has some drag compared to EUR/JPY on this, it seems like a better trade, I've decided to ride out both. Remember, North Korea doesn't have a reliable delivery system, so right now all they can do is throw it at Japan.

Waiting on official response from Japanese gov't...

Remember, this is really not good for USD either because we're part of this confrontation, Eurozone really is not...

CNN: Australian PM says there has been seismic confirmation of this test...

US geological society detecetd a 4.2

I disagree. The point is that typically governments start buying up USD and Gold when turmoil starts. Unless, of course, we have a 9/11 where it hits our soil...

And this does affect Europe. DPRK can hit Europe easier than the US.

I'm developing a new indicator. You graph a Northeast Asia richter scale under a 5-minute EUR/JPY chart. Whenever the richter scale crosses 4, you go long!

Mr. Trend,

The reason it will not have as large a positive effect on USD/JPY is that if this has to be dealt with militarily, who will do it? France?

Also, we still provide for the bulk of Japan's national defense, as the JSDF is a really half-ass non-military.

Also, right now the DPRK hitting anyone, even Japan, is highly unlikely. As I said before, the do not have a reliable delivery device. The Taepodong series is a pretty crappy excuse for an ICBM, or even a theater missile. What are they going to do, throw the damn thing at you?

I'm analyzing this based on the various announcements' impact on the currency market, however. I could care less about the possible implication of DPRK launching a nuke at Copenhagen.

I really dont think that it will have large effect on currencies...

The bottom is falling out of the South Korean stock market right now. EUR/JPY is through the roof. The impact on the yen will be huge. Some in Japan are now questioning their pacifistic foreign policy, and they have enough plutonium from their very own power plants to build a nuke in a matter of months. What if that goes down and we see a regional arms race?