I’ve been trying to pick bottoms in the USD/JPY for the last 12 months and have been lucky to escape with a black eye. If I’m going short, then this surely must the bottom, or?
Everything I’m hearing from the market is screaming at me that USD/JPY must go lower. No-one believes that it belongs here, everyone’s waiting for the magic intervention, yet every USD/JPY rally meets truckloads of sellers and the stop-loss sell orders in pairs like EUR/JPY are simply massive. If those EUR/JPY stops get triggered and the EUR/USD bids above 1.2600 are big enough to soak up the EUR leg, then USD/JPY will come under massive pressure. The black hole probably won’t happen until 75.00 but if we get below there, watch out.
Short @ 76.80 with s/l above 77.75 looking to add to shorts below 75.00.
