Yen long positions look very interesting hereAfter watching the Japanese Yen trend lower for more than 77 weeks it appears we are now starting to see the smatterings of a bottom coming in on the currency. While it may be a bit early to 'pound-the-table' I do see an interesting opportunity presenting itself within the options space. According to my very strict WCTS model, I can only consider a long position (through options) if the current market price of a 6 month option is half of what I believe the intrinsic value of the option will be at my target price. (intrinsic value = strike price - target price). Today I took a look at the call options and we appear to have just that situation. Using a very conservative price target (W. Gann's 50% rule) I believe the currency can realistically trade back into the 1.1377 area. At the same time, I can buy a seven month (December, 2014) 1.10 call option for about .002 points (or about $250). Should the market go to my target, that option will have an intrinsic value of .0377 or about $471. This is an interesting trade because the low cost enables me to buy 2 contracts (total invested is about $500). I will look to sell 1/2 the position should prices double and ride the remaining 'free' position into expiry. Should the Yen appreciate into the Optimal Trade Entry (short) window the remaining option could realistically have $13,000 of intrinsic value - not a bad reward/risk ratio and something all traders should consider in earnest.
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6J1! trade ideas
Yen: Abenomics break?Market looks unhappy that Abenomics will print the same amount of money. Wants him to print more and destroy faster than normally expected every Japanese household that could not possibly afford not even heating their homes, after all this devaluation.
5p wedge so far, needs a strong push to create a swing low morning star that maybe will lead to break the wedge.
Momentum is creating an IH&S pattern and maybe even build one more right shoulder as symmetry hints.
61.8 area, while the upward trend line that provides support comes from 1985 through 2007 lows.
All the best
Cheers
P.
Getting Ready6J is winding tight. Don't caught up in the guessing game. Wait for the hat tip...tradem well!
Yen Futures - Still undecidedWith Russia/Ukraine weighing in on the markets, the Yen is one of the obvious safe havens in a risk off environment. But with easy money policy, its been getting weaker and weaker, which makes one wonder if this recent move to the upside is a change of trend or just a retracement.
Oscillators don't give out much clues. But if we look to the past, we see a short entry example. If the trend were followed, stops would be trailed to 0.9959. If this is taken out and price finds support (meaning: breaking the EMA + a support point) could mean a possible push higher. (So it would make sense to wait for a retest on the MA before taking longs).
Alternatively, the Yen could just continue pushing lower with the current rally being seen just as a mere retracement to the downtrend.
YEN UPYen is oversold and has found finally support at 0.96750. A bounce is in the cards. Watch out the Nikkei for a short too.
^Jj daily - meaning short EURJPY, GBPJPY, USDJPY, etcshould go to at least 38.2, possibly higher. 61.8 in line with TL again
YEN forming a nice triangle on a weekly chart.The YEN looks to either break down and continue down all year, or break up above the triangle, and cause a lot of confusion for the Japanese finance ministers.
$JPY - Obama The PeacemakerVersion takes into account the positive solutions in the Mediterranean basin. The structure will work to generate impulse. We are waiting for the end of the fourth wave.
Yen Gartley in the making?A turn on Tuesday would fit nicely with the Lunar phase and Gartley ideal price retracement of 78.6%. Let's see..
$JPY - The inverse situation.I expect the strengthening yen. We have the BOJ meeting / May 21-22 /. I think Mr. Kuroda fulfill his destiny.
Japanese YenShort the Japanese Yen has been by far 'The trade' of 2013. Now entering its 22nd week of a downward correction CRI's weekly commodity trend survey (www.therationalinvestor.ca) suggests the short came in at 123.99. Initial targets were hit and far exceeded and any remaining shorts from this trade (if you were able to trade multiple lots) ought to be considered 'free rides' at this point. Indeed, we are fast approaching two significant technical targets and what I would personally consider a very important level going forward. The psychologically important 100 level ought to act as a pivot for the next while and as the market consolidates we should see spikes higher and lower defining its trading range/boundaries. I fully expect one of those spikes to hit the OTE Long SS (70.5% retrace) and at the same time fill the long outstanding gap at 95.63. Should we go through a period of bottoming and come out the other side bullishly, I would expect a test of the OTE Short SS (70.5% retrace) as outlined on the chart above - but that is a big 'IF' and quite a ways down the road at this point.
