Kuroda’s “non warning warning” yesterday about the falling Yen, has put the
brakes on the parabolic move in EURJPY, accelerating skyward cuz 1) nobody
cares about the “war” anymore, and 2) a very Hawkish FED with rate increases
set for every meeting the rest of the year, with some even projected to be 50 bps
… by contrast, the BOJ is doing NADA … this ain’t a Yen or EUR story, this is an
interest rate differential story that couldn’t be more crystal clear … but at the
same token, Kuroda and the BOJ play hardball, especially when they hear from
importers and exporters in Japan complaining about the rapid fall of the Yen
… keep it up hedge funds & specs, and your ass is gonna get handed to you in
spades when they intervene and the Yen goes up 2 or 3 Yen in seconds, and the
cross gets obliterated setting off major sell stops … and at the bottom will be
the importers, exporters, and Japanese banks making more money in 3 minutes
than they’ve made in 3 months … all at your expense of course!
The BOJ’s warning is not to stem the Yen’s fall … it’s to stop the parabolic curve
of the fall … as a result, look for more contained ranges and at a minimum some
consolidation in the low 130’s for EURJPY, before any trip higher to 125 and
beyond in USDJPY … if not, and this thing still climbs nonstop [Yen lower 12 out
of 13 days for about 6 Yen, and Yen crosses growing to the sky}, look for a day
where there will be “Hell to pay”, and accounts massacred … count on it.
Who knows what the New York afternoon holds, but as of today’s London Fix, the
daily EURJPY chart looks like a big time “Doji” spindle … while not necessarily
meaning a viable top, this indecision [which doji’s represent] should mean a
slowing down in the price rise … and that goes for USDJPY as well … and
speaking of USDJPY, it’s just as viable a candidate for trading as EURJPY,
especially when EURUSD and YEN move in the same direction … lately, EURUSD
is the least influential in the cross, so trading YEN can be done instead of EURJPY
just as effectively, and the spread is the LOWEST going.
Only one good algorithm buy signal today, as EUR is going lower while YEN is
moving higher … not what you want to see when buying EURJPY … TURNKEY
PAMM UP SLIGHTLY … then everything changes at the criminal NYSE open and
EURJPY goes straight up into the afternoon … what bullshit, but it is what it is
… meanwhile over in BTC, the trading action literally sucks … ranges are horrible,
and the moves tiny, and it’s hard to adjust to BTC trading like corn spreads
… it’ll change, we just have to be patient … not easy, but it’s what is needed.
… outta here … “The future’s so bright I need sunglasses”!!😎😎
… Onward & Upward!!
-vegas
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