by Mike Ber, Forex Alerts
Last week was very volatile for Forex traders. Such volatility went probably unnoticed by equity traders, because markets were relatively stable. We didn’t place even one trade involving Japanese Yen last month, and advocated our members to be patient and wait for the extended pullback.
Summary of Our Last Week Trades
On June 3rd we established a long USD/JPY position at 99.20. At first the trade went our way, but we advised our clients to protect profits and get out at 99.31, because the situation started to change. On June 6th USD/JPY collapsed, and broke through the 95 barrier, before the sharp reversal. There is a chatter that the Japanese government intervened at the 95 level, even though officials publicly denied that such action took place. The pair ended the week at 97.43.
During this mayhem we established 2 long USD/JPY positions with the 97.05 average, and we are 80 pips in profit at the time of writing. In addition to that our buy level on EUR/JPY was hit, and we established a long position at the lows at 126.25. On Friday we were up 260 pips, and we advised our clients to sell half and take profits. Our targets are 99.54 and 102.12 for USD/JPY, and 130.05 for EUR/JPY. We also hold 95.57 long CAD/JPY position. As always, the situation may change, and we will keep all our subscribers up-to-date on Twitter.
Bank of Japan Meeting in Focus
Japanese Yen will stay in focus next week, largely due to upcoming Bank of Japan meeting. Yen strengthened by 7% since the last meeting that took place on May 21st. Such drastic change won’t go well with the Japanese authorities, but it remains to be seen if they can say or do something new to provide a catalyst for further fall of the Yen.
While all Japanese pairs may pullback from the current levels, we believe that last week’s low was the bottom.
We want to mention that last month we had 100% success rate; hard to believe, but this is true. We placed 11 trades in total, and all of them were in profit. You can view the list of all our trades HERE
Originally published at Zentrader as Japanese Pairs Update: BOJ Meeting in Focus