The G20 statements more or less give the continued currency war a big fat A O.K – so we can only imagine that the good ol Yen (JPY) will continue to take a pounding. As nothing moves in a straight line… I can’t help but ask “when will we see a counter trend rally?” but all things considered – it may not be quite yet. The trade implications could very well co inside with a couple of my previous posts:
Here I outlined the topside possibilities in the pair AUD/JPY being as high as 1.05. As extreme as this may have sounded at the time, the AUD/JPY pair has provided me with some of the largest profits to date – and deserves another look.
Here I suggested that the long-term trend in the pair USD/JPY has indeed based… and in turn reversed. The trade here has been massive – and as suggested one of the best trade ideas of the coming year.
A caution to readers that we are nearing a near term “topping process” – and that often these moves present a massive “spike” as Wall Street hands the bag to the poor retail guys buying at the absolute top.
Now I can only do my best to put the pieces together as I see things happening in real-time – but should “all things Kong” play out as suggested well……..wouldn’t that be dandy? In all – my suggestion / plan to be 100% cash by mid March is soon upon us so…I will be watching closely and suggest you do the same.
The outcome here (whether it be next week …or a couple more weeks) “should” see a very large move UPWARD in USD ( as fear grips markets and safe havens are sought) as well JPY – coupled with a considerable correction in the U.S Stock Markets and “risk” in general.
As backward as it may seem (and almost “sick” in a sense) in the back of mind – I am already formulating LONG USD IDEAS.