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NZD / JPY - Afraid of the Carry Unwinding?
By Eliseo Agas | November 5, 2007
If you’re not afraid of the carry unwinding near-term here is an idea with NZD/JPY…
Carry trades unwinding will probably be a drawn out process punctuated by brief violent sell-offs as it develops. Now if you feel that the carry is still acting as support and yielding good opportunity now might be a time to consider getting long. Again, this is for a shorter to intermediate term trade…holding too long could get you hurt.
Notice the Daily versus the 4-hour attached screen grabs. We have a potential subsiding in selling interest the past couple of days developing. The Daily chart is in the middle of contracting volatility but still in a modest upward direction. I’d say any break below 86.65 would invalidate this idea since it would indicate that our timing is off or that the bears are much stronger then anticipated.
Let’s see what happens!
Tags: forex charts, forex trading, JPY, Kiwi, NZD, Yen
Topics: What To Look At In The Market |