August & September run an out performers champion of buying EURJPY and selling AUDNZD.

Expectation of positive risk appetite in a bullish tunnel for carry trades remained in September, and market is positioned in the third week of September at extremes, so of note, will FX carry Trades Turn into caveats themes Trades in the end of this month?


Nothing seems going the wrong way if EURJPY is at Extreme

The yen has failed to appreciate in line with Japan’s economic recovery. For foreign investors, the Yen remains an attractive funding currency for buying euros, especially since BOJ tightens policy on a quarterly basis. At the same time, concerns about slowing global growth have encouraged equity managers to remain under-weight Japanese equities.

Technique of EURJPY

Model funds had added to their long EURJPY positions despite Yen-Bullish Fundamentals.

FOREXSURVIVORsee that these funds will hit stop-losses at 14300. Apart, a correction down to this level would trigger a massive liquidation of EURJPY longs.

As FOREXSURVIVORequation lays the concept of the EURJPY routing, there is no expectation that EURJPY will visit lower level than 14500 that soon, and apparently the 14300 level to be breached early next year. What solicits the equation, persistent buying EURJPY by Japanese Investors.



AUDNZD shorts on the liquidation phase

FOREXSURVIVOR targets AUDNZD @ 12300 since mid September, and positioned long since then.

The market overestimated the probability of RBNZ rate hike in January 2007, and underestimated the chances of an RBA rate hike on 1 Nov.


August & September run an out performers champion of buying EURJPY and selling AUDNZD.

Expectation of positive risk appetite in a bullish tunnel for carry trades remained in September, and market is positioned in the third week of September at extremes, so of note, will FX carry Trades Turn into caveats themes Trades in the end of this month?


Nothing seems going the wrong way if EURJPY is at Extreme

The yen has failed to appreciate in line with Japan’s economic recovery. For foreign investors, the Yen remains an attractive funding currency for buying euros, especially since BOJ tightens policy on a quarterly basis. At the same time, concerns about slowing global growth have encouraged equity managers to remain under-weight Japanese equities.

Technique of EURJPY

Model funds had added to their long EURJPY positions despite Yen-Bullish Fundamentals.

FOREXSURVIVORsee that these funds will hit stop-losses at 14300. Apart, a correction down to this level would trigger a massive liquidation of EURJPY longs.

As FOREXSURVIVORequation lays the concept of the EURJPY routing, there is no expectation that EURJPY will visit lower level than 14500 that soon, and apparently the 14300 level to be breached early next year. What solicits the equation, persistent buying EURJPY by Japanese Investors.



AUDNZD shorts on the liquidation phase

FOREXSURVIVORtargets AUDNZD @ 12300 since mid September, and positioned long since then.

The market overestimated the probability of RBNZ rate hike in January 2007, and underestimated the chances of an RBA rate hike on 1 Nov.