As shared in one of my earlier tweets, I believe the fx markets are increasingly more difficult to trade on leverage or on options, simply because the premiums are too expensive and the price actions whipsaws too much.
Going forward, I feel that in some trades it would be more prudent to do the trade on a cash basis. We can then hold the position for as long as needed till the market comes to us.
In the case of the USDJPY, I have seen a recent pattern where whenever it hits near 100, thereafter, given enough time, it will rebound back towards the 105 level and this happens in the short term.
On August 3rd at about lunch time in Asia USDJPY hit a high of 100.74, I decided to Long USDJPY at 100.80.
Since then, it has high a high of 101.65 and is now trending at 101.04.
I am confident that I will be able to make one to two big figures on this trade within a month.
Let’s see……….fingers crossed!
The Panthenon Investment Group 