Top
New York  London  GMT  Tokyo  Sydney 
Browse > Home / All, Asia, Mkt Talk / Groundhog day, Yen crosses fade away after Tokyo fix

Groundhog day, Yen crosses fade away after Tokyo fix

By   || July 17, 2009 at 02:15 GMT
|| 5 comments || Add comment

Nothing new, Yen crosses were bought into the Tokyo fix have now faded away giving back the move and then some. EURJPY saw a move into the fix from 132.50 up to 132.75 then reversing to see it towards yesterday’s lows, taking out some light stops under 132.00. Look for some immediate support at 131.80. USDJPY back to find support at 93.50 and the 40 pip up move in GBPJPY has been negated with a 100 point drop from the highs, post fix. Seems easy money, buy into the fix sell after the fix!

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • LinkedIn
  • email
  • Print
  • Add to favorites
  • del.icio.us
  • Digg
  • NewsVine
  • StumbleUpon
Category: All, Asia, Mkt Talk
Tags: ,

Add a comment

5 Responses to “Groundhog day, Yen crosses fade away after Tokyo fix”

  1. Millward on July 17th, 2009 03:33 GMT

    Hi Sean………what is so important about the Tokyo fix?……or is it used as more of a ploy to suck in trader’s?…………what in your opinion doe’s the fix sway , against the intra trend-daily trend, or with?……..lots of question’s I know..

    thx in advance.

  2. Sam Diakou on July 17th, 2009 04:32 GMT

    Hi Millward,
    Sam here. The Tokyo fix is the rate that is established for the day for banks and customers. So if there is high demand for say EURJPY on the day then you find it bought up into the fix and vice versa.
    For the last week or so, we find moves up into the fix then slide away because there is no follow thru.
    Impotant dates are 5th 10th 15th 20th etc of each month as importers generally settle their accounts on these days.
    Cheers,
    Sam

  3. Sean Lee on July 17th, 2009 05:06 GMT

    Hi Millward, jusr adding to what Sam said. Many corporates will transact all of their FX requirements at the fix and will tell their banks what they want to do as the fixing is taking place (why they don’t trust their bankers, God only knows!). The fix is really a good indication of what corporates really want to do but when the banks get wind of which way the book is slanted ie if they know that there will be a lot of EURJPY buying at the fix, then they get long beforehand, ramp up the interbank market and then fill demand at the lofty fix price. Then the market falls back to where it was anyway. No wonder the worlds financial markets are in trouble.

  4. Millward on July 17th, 2009 09:19 GMT

    Thank you Sam & Sean for a comprehensive explaination.

  5. okechukwu on July 17th, 2009 10:56 GMT

    I also want to thank you for the comprehensive explanation on mysterious Tokyo fix

Bottom