Wednesday, August 4, 2010

Day 24 : + 6.37%

1125 : USD/JPY at 85.47
1450 : After going through past data, realised that past BOJ interventions generally did not result in spikes of 200-400 pips intraday, unlike the SNB. Large bids were placed to prevent the pair from plunging too fast, about a 100 pip reversal from intraday low at most. And generally not effective as the USD/JPY continued its downward move throughout the intervention period. Which may explain BOJ's current reluctance to intervene. Personally think there may be a gradual shift in favour of JPY strength as they can accumulate foreign assets at much reduced prices. Continued strength in stock indices seem to be the only factor that can weaken the JPY at this moment.
1510 : Now at 85.45 after hitting intraday low of 85.32.
1530 : Tea time !
2035 : Rose to 85.70 from 85.50 in tandem with rising stock indices within the last 20 min.
2210 : USD/JPY rose to high of 86.19 after data shows Non-Manufacturing ISM at 54.3, stronger than expected. The market had expected a dip to 53.0 from 53.8.
2245 : High of 86.35 now. Identifying the next currency pair to be our next target. On radar screen now : USD/CAD 1.0205, CHF/JPY 82.10, EUR/GBP 0.8281
2310 : Trading operations ceased for the day. Time for some reading and research.

Total Trades : 120

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