WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Dollar Yen and Yen Pairs Spike Higher

Posted by Joseph Trevisani on Feb 15, 2013 10:25:00 AM

 

The lunge higher in the dollar/yen, yen crosses and euro/dollar ahead of the ECB fixing has knocked the wind out of the market's sails, several traders say. The violent rally is just the latest example of headline trading that has dominated the last couple of days. According to leaks from the G-20 meeting in Moscow, there will be watered down language on currencies in the communique. This gave intra-day shorts in dollar/yen and the yen crosses reason to cover their positions, dragging the euro in their wake.

But some traders are still wondering what drove the spike in dollar/yen, from 92.76 to 93.17, in two minutes and ahead of the headlines? Was there a leak before the news headline leak? A lot of pain was inflicted in this move and in others this week, which has significantly dented P&L's, likely including those of some macro players that just recently had seen press coverage trumpeting outsized gains from yen short positions set late last year.

 

MNI & WWM



Charts: Bloomberg

yen 1 min resized 600

 

eurjpy 1 min resized 600

 

eur 1 min resized 600

 

Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

FAQ CenterLEARN MORE >>
Browse our frequently asked questions and find your answers right away.

VideosLEARN MORE >>
Access to the educational lessons, webinars and platform walkthroughs.

READY TO TRY THE MARKETS?

Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!