02
Jan
2008
EURJPY Beats Me Up
Posted by Tom as Forex
Wow, what a brutal day to be long EURJPY. I guess the Kimono Traders (they drew first blood) bought back their Yen really fast today after the USD plunged on bad economic news! Everyone was trying to get out the the USDJPY carry trade because the Fed is likely to cut rates on the USD again. The better bet remains in the EURJPY carry trade for now and my guess is that this Yen “appreciation” is overblown. I suspect that the Yen will weaken relative to the Euro again in a few days, at least I hope it does! 
2 Responses
kerwin
January 4th, 2008 at 2:28 pm
1It seems like you were playing mean reversion rather than trend trading this pair. I have shorted this pair three times so far this year, i am also short nzdusd, as well as gbpusd this new year. I dindt see eurjpy giving any indication of strentghing today.
Tom
January 4th, 2008 at 5:27 pm
2Kerwin,
I’m playing a fundamental carry trade on this one, EUR is hiring yielding. I have some ability to ride out the storms but that strategy could change should the Yen continue to rally.
Glad you’re making some $$ on it!
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