since i have no open position, i can say i am in a right state of mind to make a judgment..
i put buy limit on 81.30, and is subject to change according to the market, based on the idea that history always, or if not always, quite often repeats itself. the japanese government will eventually intervene in the market.... for this i am pretty convinced it will have to touch the 1995 lowest 79.xx... why?
1. because the japanese government failed last month, they are not going to intervene before it touches the strong support on 1995, so that they...
3. the trend has now 30 years so every day we hear the same thing yet people call for trend to be over. it can last another 10 years. and UJ trading below 80 or 70 who knows ?
4. what's that have to do with UJ ?
5. dealing with deflation is the hardest thing. Japan has deflation for 20 years now. So inflation is a piece of cake compared to deflation. Deflation is like cancer. it will eat your assets.
You don't need to try to stand in front of the train. Again the quote with solvent was referring to fundamental reasons that exists. what fundamentals do you see when you are talking about Japan currency vs US currency. All Japan debt is held by domestics. All US debt is held by foreigners. Japanese are saving a lot. Americans are spending more than they have.
So don't trade against the trend.
You think the trend is done. Great. Stay out until the trend changes.
You know how many traders/investors/people said that UJ is about to go north ? Aince UJ was below 100. So sure you can buy and stay solvent but you are either going to buy a small quantity so you can be ok with a 500 pips move down. and that will mean that IF/when it will go up you are going to make small amount of profits.
oh and what's your target. I tell you what will happen. you are going to keep buying and have negative on your equity. and one day if you can keep the position. you are going to close it on break even.
go with the trend go with the flow. think that trend is changing ? stay out. don't stand in front of the train
People keep buying this thing since 95. let's see if we go below 80 and below 75.
UJ downtrend is not loosing momentum. it's almost like collapsing.
JPY is one of the strongest currency. You think USD is going up. short something weaker not JPY.
I bet you want to buy USD/CHF also. because. hey. it went down to much.
There is NO to high or to low in Forex.
Lots of pips to you.
