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Tag Archives: Abe

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!

This morning at about 1130am Abe was caught saying to the press that he will SLAY the DEFLATION MONSTER and do everything to implement fiscal and monetary policies to achieve this objective.

I decided to quickly short the USDJPY at 100.24 and when the market responded, I took profit at 99.80, it went to a low of 99.43.  Nonetheless, I made a tidy profit of 44bps or 0.44%.