Sunday, December 15, 2013

Yen: Has the beast finally given up?



So here is my first mail which I sent out back in 2012 . At that time I was working as FX Trader with ETX Capital . It was funny because as soon as I sent out this mail to my close associates and traders I knew in fund industry they all were long UJ in the next 24 hours . This was the mail which probably landed me to my next job very quick I think . The key is the pattern in the chart which clearly cannot be ignored .

Later on that year UJ tested my patience as it closed below 20MA and stalled for few months. However this did not put me off because on the other hand my stat arb algos giving me obvious hints of breakout higher. Finally in Oct 2012 UJ again close above its 20 MA and never looked back. This was classic as fundamentals aligned perfectly with technicals and market sentiment. Added bonus the long term stat arb model which went long UJ and Nikkei. The move had to be explosive.

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