06 April 2011

USD/JPY : Ready to Cut Loss

  • Been short USD/JPY as insurance policy to protect very large Risk On core. Now that the core has been much reduced, time to look for levels to ditch the hedge. It has served its purpose well as a psychological crutch in holding with confidence the trending core to objectives (monetary this particular instance, not chart) even if it does seem a bit wasteful to observers. As in all insurance policies, don't regret if you don't get to collect. In fact, not getting paid off is cause for celebration. For me, now is just the small matter of bargaining for a reduced premium.
  • Monthly : Downtrend resistance line at 85.80. Cut loss above here for sure.
  • Weekly : Broken out of triangle and previous resistance, at 83.56 and 84.51 respectively. Realistically, I do not expect to be able to get out at 83.56. 84.51 looks the more likely candidate. Bid is in.

6 comments:

Taichiseal said...

Cut half at 84.95.

Market Strategist said...

Good trade! Why don't you turn net long on USDJPY now?

Taichiseal said...

Are you kidding me ?

Market Strategist said...

I am not kidding you. I am already sitting on good profit by long USDJPY.

Taichiseal said...

Then I guess we are on completely different wavelengths.

Taichiseal said...

Balance cut at 84.60 .. filled on Japan 7.4 earthquake news.