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Tag Archives: Kuroda

I strongly believed that Kuroda was going to talk a weaker yen, unfortunately, his speech was rather neutral and political.

When he says that the BOJ is comfortable for inflation to shoot past 2%, I mean it must be a joke right. Inflation is so benign in Japan, shooting past a target that is so far away is RIDICULOUS! It would be so different if Kuroda said that they would adjust CPI to 1.5% and then, let it over shoot.  If USA has adjusted CPI downwards, why not Japan?????

Today QE in Japan is about 400 trillion yen or about 80% of nominal GDP…………hmmmmmm………..that is scary!!!!!!!

This can only mean a WEAKER YEN.

Anyway, coming up to Kuroda’s speech, yen was weakening from 100.8 in Asia morning to 101.70 by 2pm.

I decided to square my position at 101.70 for a trading profit of 1.54 yen!!!!!!! Yummy!!!!!!

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!