USDJPY breaks below the cloud

February 4, 2014 by

The EM woes have led to USDJPY feeling very heavy. The close below the cloud also has given me more reason to sell:


Now as the market has dropped substantially helped by the lower than expected ISM yesterday, i am hesitating to sell here. I am therefore using the trend analysis sheet to provide me with an entry at 101.98. Using the correlation matrix, i favour hedging my self in the case of a move back higher in USDJPY. Therefore, once i have entered into the trade, I will look to buy the DOW or Nikkei against it. I will evaluate once we trade at 101.98 in USDJPY.