USD/JPY – The Only Thing You Need

A bit of “make it or break it” mentality here this morning as The Nikkei has pushed higher ( with JPY now trading down to it’s “hard-line of support” ) with The U.S Dollar pushing near term highs – where it was turned back in both January and a February re-test.

This puts EUR at “its major line of support” at 1.34 as well GBP “just hanging around” the upper sloping trend line ( daily trend still very much up ) near 169.50

A significant junction to say the least, as correlations across currencies suggest “a move” is certainly pending.

Currency markets should likely make a solid move here in coming days – breaking the summer doldrums.

Transports have clearly broken below support suggesting further decline, and The Dow is now under the “previously suggested top” at 16, 950.

I’ve essentially had this boiled down to a “risk on vs risk off” mentality as of late considering all the larger geopolitical factors, coupled with continued “poor data” coming out of Japan. The Yen has been the largest driving force of this continued rally in risk, as the continued printing, then conversion to USD and purchase of U.S Equities works it’s magic. The Fed passes the buck to The Bank of Japan to do the heavy lifting.

Consider 200 billion per month in paper coming out of Japan, compared to the now “only 35-45 billion” from The Fed to put this in perspective.




Japan is where the money is coming from.

A close eye on the current “range” on currency pair USD/JPY is really all you’ll need.

Break out – or breakdown?

Feel free to check out how we’re trading it at

8 Responses

  1. Anonymous July 30, 2014 / 8:18 am

    Now I see why you have to bash the good ole USA…because you actually do not have a clue about the finer points of capitalism as demonstrated by the fed, and thus you displace your frustration in your market failures by bashing the aforementioned. You are a low life POS that’s living in a 3rd world country because you couldn’t make it in a truly free country. Loser…

    • Forex Kong July 30, 2014 / 8:26 am

      Finer points of capitalism as demonstrated by The Fed?

      Oh do please elaborate. Myself and all other readers ( planet wide ) would be thrilled to hear something “positive” about The Fed.

      Do tell!

      Lots of American retirees living here on this “beautiful Carribean beach” as well, and funny thing.. I see these “ideals” pasted nearly everywhere in American culture….the “dream of getting away”. The hopes for just that tiny “one week holiday even” on a beautiful sunny, white sand beach. Hmmmm…..I guess I must have this all wrong.

      I guess “living the dream” means stuck in Seattle to you.

      Go man go! It’s time for me to grab some beers and head out for a swim!

      • Anonymous July 30, 2014 / 10:10 am

        Keep fooling yourself loonie, the folks with money are up here in the cooler climates this time of year. That cesspool, you call home, is alright for temporary vacation in the winter, that’s about it. Keep smiling!

        • Forex Kong July 30, 2014 / 10:16 am

          Fun stuff.

          I’m not sure you understand where I live but that’s O.K – “The Mayan Riviera” yes ( please do google it )…one of the most beautiful places on Earth – yes yes….that’s it.

          Perhaps you’ve only heard of Tijuana with all the drug conflict and guns.

          Hmmmm….Well I’ve heard of Detroit and Atlanta as well ( nice…..really nice looking places to be )…..but certainly can’t lump “all of America” into the same big pile now can I?

          You should get a vacation – if you can afford one.

      • Anonymous July 30, 2014 / 10:41 am

        As a retiree at 56, and vacationing full time, I may come visit PDC December or January, Virgin Islands are getting boring. Do you have to still put your soiled toilet paper in the trash, or can you flush it now?

        • Forex Kong July 30, 2014 / 10:47 am

          Now he’s coming to PDC – hilarious.


    • Forex Kong July 30, 2014 / 8:39 am

      But of course!

      This has been the case for sometime now, as the “hot money” printed out of Japan spills over into U.S Equities as really…the last game left in town agreed?

      In watching JPY get “converted to USD” in order to buy U.S Equities we saw the pair make HUGE gains at the onset of The BOJ’s printing campaign last year….only to “top out” at the beginning of 2014 and trade flat to lower ever since.

      This is because the writing is on the wall here as Japan ( as well the U.S ) have both essentially stopped “upping the anty” with less and less money printing out of U.S – and no “new money / stimulus” expected out of Japan til mid 2015 or perhaps not even at all.

      Without these two Central Banks doing what they’ve been doing for so long…..U.S Equities would have tanked / months ago. The Fed attempts to safe face with tapering while The BOJ steps in to keep things elevated as long as they can.

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