Boris and Kathy's FX Blog www.bktraderfx.com
12/27/2006
Today's Email Alerts:
Alert # 1 Getting Short USD/JPY
Welcome back to Carry Trade Unwinding! Overnight the JiJi news agency reported that the Bank of Japan will be weighing the possibility of a 25bp or 50bp rate hike in January. Although this is pure speculation, the market is already pricing in a 70 percent chance for a January hike. It is unlikely traders will want to be short Yen going into the meeting. Furthermore, the UAE central bank announced this morning that they plan on diversifying out of US dollars into Euros. There is widespread belief that many other Middle East central banks are increasing their holdings of Euros, British Pounds and Japanese Yen.
Therefore So we want to go short USD/JPY at market (Currently 118.65 ) Stop 118.90 T1 is 118.40 T2 is 117.87. As usual, once our first target (T1) is reached, move your stop to breakeven on the second lot.
Alert # 1 Getting Short USD/JPY
Welcome back to Carry Trade Unwinding! Overnight the JiJi news agency reported that the Bank of Japan will be weighing the possibility of a 25bp or 50bp rate hike in January. Although this is pure speculation, the market is already pricing in a 70 percent chance for a January hike. It is unlikely traders will want to be short Yen going into the meeting. Furthermore, the UAE central bank announced this morning that they plan on diversifying out of US dollars into Euros. There is widespread belief that many other Middle East central banks are increasing their holdings of Euros, British Pounds and Japanese Yen.
Therefore So we want to go short USD/JPY at market (Currently 118.65 ) Stop 118.90 T1 is 118.40 T2 is 117.87. As usual, once our first target (T1) is reached, move your stop to breakeven on the second lot.
posted by BKTrader # 12/27/2006 02:42:00 PM 
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