What happened to Yen Today?

Trading Discussion
1

There I was going short, and I was up 200$. The yen was going down, steadily down, and I was happy.

Then, it went up, and I was like “It’s ok, it’ll keep going down for such and such reasons”.

It went down, and hit my break even, and I was like “It’ll keep going”. I was confident.

Then it went up to 122.50, and I was like “crap”, but it went down again, so I smiled.

Then it went back up. and kept going up. And before I knew it I HAD close my position after I accepted it wasn’t going down any further. I lost all my gains from yesterday + a bit more :frowning:

So can anyone explain to me why the Yen spiked so much? It was just chilling, going down, then BAM! It went up to 123.18 or so as of now. I’m so pissed :frowning:

2

I think it was profit booking happening by US traders due to US FOMC statement coming out on Thursday.
Now its back on track…
I was kinda pissed too, that it would be going up. But that was the only reason people are getting ready due to US FOMC.

3

i remember. i didn’t cross jpy this day so i looked at gbp/usd, gbp/chf

but behold, it crashed on me as well.

how to explain such drastic movements would be with fundamentals which you can’t ignore. lesson learned.

also on gbp/chf i looked and realized it made contact with the resistance looking at the weekly charts…maybe this was reason for the huge dip?

one question, how do u know if something is going to break out or not? based on higher highs and higher lows and vice versa?

4

well, the yen crosses keep bobbing up and down and thats what they will keep doing…u need to know the supports and resistances and then if u trade those carefully, u can make quite a lot…just be careful…you can have a look at my blog for more info:-

Trading JPY crosses

Thanks.