Hold Your Horses...

My USD/JPY and EUR/JPY trade from last week is still moving in my direction and isn't showing any real sign of abating. Aside from taking some profit from my USD/JPY position, I've basically held my trade as is until I see reason not to... I raised my stop for the USD/JPY to 91.69 (locking in 70 pips on my existing lots) and EUR/JPY to 134.71 (locking in over 200 pips).

Holding onto a Good Thing

Since I doubled down on my bet against the JPY about 24 hours ago, things started to go my way in a hurry. A rush of positive economic data from the U.S. has pushed the markets higher, which in turn creates more risk appetite for higher yielding currencies. I'm up over 150 pips on my EUR/JPY trade and I'm in the green on my USD/JPY trade, which was about 20 pips from being stopped out for a loss yesterday. With housing starts and initial jobless claims due out any minute, I expect the market to take these pairs even higher. We shall soon see....

Betting Against the JPY

The USD/JPY trade from last night hasn't gone very well so far, but I am still in it and have not been stopped out.

Considering the good news this morning out of the U.S. for CPI and Industrial Production, there should be some risk appetite in the market. I will add to the flame here by increasing my position against the JPY. Instead of going in the USD again, I will go long the EUR/JPY with a stop just below the 131 level, where there is some clear daily support. About 200 pips is a lot to risk for one trade, but I am not going in too heavy and there is a ton of room to the upside here, so I still believe the risk/reward ratio is in my favor.

risk ~ 200 pips

reward ~ 250 - 500 pips