Since the beginning of 2021, if you have been watching bonds, the 10Y bond yield has been rising along with the USDJPY.
Investors and traders already positioning themselves for higher interest rates. BOND traders do not wait for the actual interest rate raise. Its coming. Options volatility has increased since October and we have a new monthly high on the SRVIX, eyeing stress and uncertainty in interest rate markets.
Looking at two rate hikes next year and who knows about surprises along the way or before then.
We just went through multiple weekly highs, yet too close this week, bringing 118.xx into focus.
Expensive up here being where we are at but the outlook is good for this to continue up.
With the USD having higher interest rates and the JPY below 0 and no indication of changing, this could turn into a carry trade pair and send it much higher. We will see, not convinced on the history of this pair being a carry trade pair. You got unwinding to deal with among other things. I will continue to watch the market dynamics on this one.
Still in the trade from last week.
Entry was 112.99
Currently + 183 pips.
Plan and execute.
Investors and traders already positioning themselves for higher interest rates. BOND traders do not wait for the actual interest rate raise. Its coming. Options volatility has increased since October and we have a new monthly high on the SRVIX, eyeing stress and uncertainty in interest rate markets.
Looking at two rate hikes next year and who knows about surprises along the way or before then.
We just went through multiple weekly highs, yet too close this week, bringing 118.xx into focus.
Expensive up here being where we are at but the outlook is good for this to continue up.
With the USD having higher interest rates and the JPY below 0 and no indication of changing, this could turn into a carry trade pair and send it much higher. We will see, not convinced on the history of this pair being a carry trade pair. You got unwinding to deal with among other things. I will continue to watch the market dynamics on this one.
Still in the trade from last week.
Entry was 112.99
Currently + 183 pips.
Plan and execute.
Swing the AXE..HARD w/ Effort, Consistency and Patience