The Yen got crushed today as comments by several Japanese government officials sparked fears more would be done to devalue the currency.
The Dollar Yen cross closed at its highest level in over 2 years. Technically it needs to go to the 95.00 96.00 level to complete its latest upward pattern. However, the volatility is getting extremely high which usually means a top is forming. There remains a strong possibility that the market could indeed spike up to the 95 level on an intraday basis.
Buying it here is a very risky move because of the heightened volatility. However the thought of grabbing a few hundred pips quickly is very enticing. Buy it here with a stop of 87.90 and a profit of 94.00. Because of the risk in this trade and the move today in the EUR/JPY I am going to get out of the EUR/JPY trade entered yesterday. I will exit at the market making over 200 pips.
Additionally because of the large move over the past week in the USD/CAD and having two positions on, the entry from 1-7-13 at .9859 I will liquidate at the market. On the entry from 12-31-12 at .9850 I am changing the trailing stop to 100 pips which will put it currently at .99231.
Market: USD/JPY - Forex
Session Date: Friday January 25, 2013
Buy or Sell: Buy
Range: Current Price
Chart: Daily chart of the USD/JPY with Stochastics 12-3-3