Red alert went off here....
What started as a trickle is fast turning into a flood as [CARRY EXITS] pick up pace. More panicked selling has been influenced by the further breakdown and "catch up" for Usd/Yen with stops tripped in size from 118.50 to 118.28. Some stability has returned for the Usd plays but Yen/crosses are all under pressure with Eur/Yen at session lows, and Nzd/Yen sliding to week lows towards 97.50 with Middle Eastern names behind the latest sales that saw Nzd/Usd through 0.7400. Russians have also been unwinding carry linked risk with Japanese life cos also good sellers, and some of this thought linked to Euroland bond redemption. The key is seen in Usd/Yen with any break under the 200 day m.a at 117.97 sure to spook the short term market, which to date has been a persistent dip buyer*.
* me, too... Now I'm exiting my UJ longs via B/Es in GU shorts in this correction.... I'll literally running for cover here
What started as a trickle is fast turning into a flood as [CARRY EXITS] pick up pace. More panicked selling has been influenced by the further breakdown and "catch up" for Usd/Yen with stops tripped in size from 118.50 to 118.28. Some stability has returned for the Usd plays but Yen/crosses are all under pressure with Eur/Yen at session lows, and Nzd/Yen sliding to week lows towards 97.50 with Middle Eastern names behind the latest sales that saw Nzd/Usd through 0.7400. Russians have also been unwinding carry linked risk with Japanese life cos also good sellers, and some of this thought linked to Euroland bond redemption. The key is seen in Usd/Yen with any break under the 200 day m.a at 117.97 sure to spook the short term market, which to date has been a persistent dip buyer*.
* me, too... Now I'm exiting my UJ longs via B/Es in GU shorts in this correction.... I'll literally running for cover here