Now why didn’t I sell AUD/JPY instead of GBP/JPY. EUR/GBP is the pair which had me confounded after the big rally from .90 to .92+ post GDP and all the market ‘intelligence’ (surely a misnomer if ever I heard one) about big GBP sellers. This proved to be a false move and the only explanation I can come up with is that the market is saturated with short GBP positions just as it is saturated with long EUR and AUD. Hence the moves of the last two days.
I’ve cut my cable shorts, been stopped out of EUR/GBP and I’ve booked profits on most of my GBP/JPY shorts.
I still think there is more downside for some of the JPY crosses but I think I will concentrate more on straight USD/JPY for now.
Good luck today.
