Turning Japanese – Trading The Weeks Ahead

Currency wise….little can be said. The chart of USD/JPY says it all.

This is “not” a time to consider individual economies / monetary policy / economic data of any specific country as……it’s really not about that now.



With such an extended move in “risk” all the while rapidly eroding fundamentals “world wide”…..we are faced with a very simple trade / principal with far more “significant implications” than the simple economic “rattlings” of a given country on any given day of any week.

Short term traders ( looking for an easy buck ) will have been ( and will continue to be ) completely blown to bits here as……..there is no short term trade.

100 pips ( represently fluctuation of a single cent ) jump like popcorn here, as do extended periods of time where a given currency pair just “pulls you off side” then spends days hanging in no man’s land ( sound familiar? ).

Nothing is going anywhere until this “distribution and repositioning” has run it’s course.

The obvious question at hand………………when?

I continue to watch the “continued strength” in JPY ( regardless of the lack of movement across JPY pairs ) as well the “expected reversal in Nikkei” as leading indicators – market wide.

We can’t be far off now.




Scratching the surface here these days at the free blog. For more on specific trades / entries / real time trading come join us at www.forexkong.net



10 Responses

  1. Rob June 22, 2014 / 4:43 pm

    Kong, technically speaking don’t ascending triangles suggest continuation patterns. That is higher highs, lower lows, ie a breakout in continuation with the trend. The Trend in this case being Yen weakness according to the chart above? Therefore equities should “rally” on and keep “risk on” intact…just curious what you think…

    What nonsense these last 5 months have been. So much patience.



    • Forex Kong June 22, 2014 / 4:57 pm

      Rob…..the chart of JPY futures suggests that JPY IS creating “higher lows” ( but still runing into resistance ) on the “higher highs…..ascend triangle suggests “breakout” when resistance is finally broken.

      The Nikkei ( on the 25 year ) continues to make lower highs and lower lows ( we are now sitting at yet another “lower high”)

      Let me know you’ve got this right.

      • Forex Kong June 22, 2014 / 5:08 pm

        ooops….sorry Rob I’ve got other charts posted at the members site sorry.

        Ya….the JPY futures continue to make higher lows…bumping up against resistance on the high side.

        Fundamentals don’t lend themselves to further depreciation of Yen now do they? As BOJ says “no more printing til maybe as late as mid 2015”!

        Fed tapering every month…with interest rates set to rise sooner than most people think.

        A “breakout” of Yen will mark the “significant market turn” we’ve all been waiting for as….Yen IS the fuel to the risk rally ( borrowed from Japan at 0% then invested in U.S equities at “x” return ). When this reverses ( The Carry Trade ) Yen gains big time.

      • Rob June 22, 2014 / 7:27 pm

        Interesting Kong. So if I am hearing you right the Nikkei is making higher lows meanwhile the Yen is making lower highs? So equities are trying to correct over in Japan yet the “risk on” currency is still very much in risk on “mode?”

        Thanks Kong

  2. Rob June 22, 2014 / 7:28 pm

    Excuse me. Nikkei is making lower lows** meanwhile the Yen is making higher lows**

  3. Gerald Pontificus June 22, 2014 / 7:42 pm

    sad really.

    only 200 points above where you were screaming top from the highest balcony

    • Forex Kong June 22, 2014 / 8:49 pm


      I draw lines of support and resistance with a crayola crayon – not a laser pointer. Looking at 25 year charts and such.

      The Nikkei can easily trade 250 points in a single session so…..maybe come poke fun in a week er so.

  4. Rob June 23, 2014 / 9:21 am

    Ok got it. Thanks Kong. Question, I know we have talked about patience being an important part of the trading regime, but does all the waiting around ever make you feel anxious? Sorry if that is too personal of a question, but I will definitely say sitting “tight” creates a bit of anxiety for myself. Perhaps part of becoming a good trader is learning to deal with it. Curious what you think Kong.

    • Forex Kong June 23, 2014 / 9:36 am

      Yes of course Rob…..I get anxious – no question. Not as much like the old days but……you bet – I feel it in my gut just the same as you.

      This has been the longest /drawn out / anxious / pain in the ass period of trading I’ve ever endured so….

      You my friend….are not alone!

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