I should qualify. These last 3 pairs have been signs of continuation in intermediate term, but they did create immediate jumps up ( Important to note)
03:46 ET, 6 point correction in USD/JPY in 2 days. So, perhaps the SUN is not yet rising on the country of rising sun(:-.
Our opinion in clear, we liked and still like YEN IT/LONG term(although in the shortest run, Yen did a lot better than we thought , as did Dollar ). Due to the carry trade and undervaluation , JPY is a currency to be for next few months at least, but for YEN to appreciate the degree of appreciation against SWISSY is a clearly overdone, which also corrected 4 points. This does not mean the YEN craze is over, but it means it is close.
NOTE:for traders, whenever our prognostications come out incorrect in short term trading, that almost never means ( at least for me) that I lost money on that bet. Short term, one needs to be able to manage the trade and know when to leave the small losses behind and jump back into the trade that, in a long run will reward you. Short term is entirely traders world and I/we never recommend anybody take a short term position if they are not excellent traders. There are not too many of those in the world. So, the approach should be gradual and patient for an IT/LONG investor types. The short term "mistakes" should turn into profits as an investor accumulates positions at "better" prices than initially expected ( look at our approach to stocks market allocation, YES that way!). Example we have tossed out 10% of GOLD allocation and bought stocks when the stocks went up and gold collapsed. Then we dished out 10% of stocks allocation at 1260 on SPX and waited all the way down here to make new purchases in the area of 800-900. We did have a small trade in between which we tossed out at 960 stop loss. More so, we tried, yesterday to steal the positions at unheard of 50% retracement, which I hope we can try again. Now, this was not even a true short term trading, but it shows what I am talking about. One needs to trade around even with IT/LONG term ideas, but Short Trades the trading and trade management is everything.
0804 ET, Everything seems to be up today. So, what is DOWN? YEN and DOLLAR that is what is DOWN