Thursday, January 04, 2007

And selling USD/JPY

Also, I've just sold some USD/JPY. Carry is expensive on this trade, but
if Japan is beginning a rate hike cycle and since I believe a US rate
cutting cycle is not far away, maybe it can really start to move. Also
the entry point looks good here.

Spot is trading at 119.00, I sold Jun '07 at 116.51 in £4/cent. If it
starts to move my way, I plan to increase the size and put in a stop
loss, and see if I can catch a trend. If the global carry trade decides
to take a breather, then this is what's going to move. Come on the
January rate hike BoJ!

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