Yen demand and euro supply both notable

Author: Mike Paterson | Category: Education

Decent moves so far in both currencies 13 Oct

Euro pairs lower as bunds head higher. No prime movers cited so far but we're seeing EURGBP continue its move lower to post 0.8878 with EURUSD down to 1.1815.

EURJPY a notable mover too with a break of 132.50-70 triggering acceleration through to post 132.20 as USDJPY gives up strong support between 112.00-20 to post 111.86.

The Nikkei 225 has closed on 21 year highs today and we may be seeing some change in equity/JPY correlation which has lately been very much higher Nikkei/lower JPY  as weaker yen perceived to give Japanese exporters a boost and vice versa

As I've said before on many occasions it's dangerous to over-analyse. As a former interbank trader and market maker I'm a great believer in flows. Ours is not to reason why, ours is just to sell and buy. So whatever oracle, signals, runes that you use let them guide you but if in doubt then keep the heck out.

Building a profitable trading strategy is a marathon not a sprint. No point getting slapped by a lack of understanding/obsession to trade.
                                                         EURJPY 15m