Turns out my remarks from yesterday’s post, Important trend is emerging, must have touched a raw nerve with investors and traders worldwide. This is very dramatic- worldwide. Towards the end of the post I was making fun about how predictable and one dimensional Forex related headlines have become. Last sentence was ” Maybe by tomorrow everybody forgets about safety and becomes intrepid, or reckless, and dumps the Yen.” It was intended to help my attempts to go long GBP-JPY, the beast. Today I’m learning that, indeed, a wave of risk appetite swept over the world. At least that’s what major news agencies claim in relation to both Dollar and Yen. Something like “USD, JPY fall on risk demand” is very common today. The more things change, the more they stay the same, really. With one exception, perhaps. Somebody attributed today’s strength in British Pound to … US economic growth? It is a new one, and I don’t expect it to stay around for too long.
No matter what the generally reported reasons, GBP-JPY snapped sharply today. I had tried go long this pair couple of days ago, but order was not filled. Yesterday I bought it at the market seeking good gains, but market didn’t move as swiftly as hoped for and I closed the trade for minor gains.
Forex beast comes alive.