What a brutal week for Forex and the USD. My EURJPY longs positions got beat up bad and I had to reduce my aggregate position for a loss. I guess I should start looking at synthetic carry trades as some readers have suggested (thanks Soren). Still my outlook for this pair is bullish BUT I’m reaching my last line of defense (stop), anything lower than a few pips from today’s close and I’m “punching out maverick!”
I did sell my AUDUSD position for a profit this week and my short position in USDCNY is going well. I’m playing the Chinese Yuan right now and we’ll see how well this will turn out.