U.S Traders Frozen – Yen Ripping Shorts

It would appear that the cold weather system crossing the United States has frozen U.S traders dead in their tracks. Frankly I would have expected a bit bigger “welcome to 2014” type day here, as most traders “should be” back to work.

Stuck sitting in an airport then are we? Yuk. That’s no fun for anyone.

Well…..traders in Asia have certainly hit the ground running, as the good ol Nikkei tanks an additional -225 now down -550 in just the past few trading days. Not exactly the “best start” to 2014 there, as the 16,000 level continues to generate significant resistance. Inversely we are “finally” seeing constructive shorter term charts in JPY strengthening and possibly making the turn.

We all know what continued Yen strength suggests with respect to global appetite for risk right? I’ve been over it about a million times.

There’s really nothing you can do on days like these as this as the Kongdicator is a “hair away” from triggering “short risk ideas” but still not quite there. Knowing full well the Fed is still sitting across the table from us ( as well the Bank of Japan ) now is “still not the time” to jump into anything head first but…….the odds are increasingly in favor of correction.

We know BOJ is gonna print more in April so……in a broad / general sense it makes the most sense to me that “even the U.S Fed” could just as well “allow” markets to correct through the first quarter, all-knowing the printing presses will just crank back up late March.

Actually….it makes perfect sense to me. Get a well orchestrated “dip/correction” in now, with the obvious intention to just ” reinflate” right around the same time as the BOJ. Bring in new buyers on the dip, continue to pedal the “recovery story” and grab those last few stragglers that still have a couple bucks left in their accounts.

Yes yes you know it well….wash , rinse , repeat – wash , rinse repeat.

Very constructive moves in Yen, but still not enough to get me into the trade ( Kongdictor says we look at things in aprox 12 – 24 hours ). Watch for Tweets over the next day or two as I imagine we’ll get a trade signal initiated.

Otherwise…..zzzz…..zzzz….zzzz – wish there was more.

9 Responses

  1. pecuniae January 6, 2014 / 7:32 pm

    Breaching 104.06 was enough for me to begin building a USDJPY short position. Join me Kong; I’m feeling lonely in my short 😉

    stop: 104.84
    target: 100.1

    • Forex Kong January 6, 2014 / 11:04 pm

      I like it….but “juuuust not quite yet”.

  2. Careydina January 6, 2014 / 10:37 pm

    I’ve shorted AUD/JPY… waiting…waiting…waiting…

    • Forex Kong January 6, 2014 / 11:02 pm

      Consider a few “smaller orders” Careydina, as opposed to just “one lump” as……even if it continues to trade sideways you could continue to build.

      Don’t let 60 pips shake you out either, as it’s just in a range – and getting very , VERY close to rolling over.

      • Forex Kong January 6, 2014 / 11:02 pm

        My tech can’t account for “how long” something may trade sideways so……once the “switch is flipped” I then look to watch / add / etc…

        My switch flipped on AUD/JPY days ago.

      • Careydina January 7, 2014 / 9:46 am

        Yes Kong! I’ve been waiting it to come down more. Thinking to short gbp/jpy, but this pair is too scary, 200+- in daily range.

        • Forex Kong January 7, 2014 / 9:49 am

          You need to reduce your position size if you want to “take a shot” at GBP/JPY!

          Go as small as you possibly can if you are gonna try.

          • Forex Kong January 7, 2014 / 9:51 am

            I treat every single currency pair different with respect to it’s volatility and daily ranges.

            I don’t trade GBP/JPY at all the same as I do ……… USD/CAD for example!

            You’ve got it right….when you see a “beast” like GBP/JPY – go small!! And just be happy / satisfied with whatever move you get, not the “amount” you make.

      • Careydina January 7, 2014 / 10:08 am

        Totally agree with you! Nowadays, I focus more on few major pairs. CNY is coming this month end so will be trade slow..

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