Is it going to be today? Are they causing this rally up? Is it going to be now? When are they going to do it? They normally do it, why haven’t they? Maybe I shouldn’t trade them short?
What do you think I’m referring to? Yep those Japanese Yen pairs.
Over the last few weeks we’ve seen the Yen grow stronger against various currencies. To levels we don’t normally see without the Bank of Japan jumping in and causing nasty looking spikes on our charts.
As a trader I have to bear in mind that they may intervene at some point and if I were to sit on my hands and do nothing whilst waiting for the BoJ do their thing I would have missed out on some lovely profitable trades over the last few weeks.
As a Technical Trader I trade what I see. When my setup appears – I trade it. Should there be any intervention from any of the Central Banks (and there has been plenty of rumours going around about that) my stop loss should help me to control my losses.
Maybe I’m weird but I hardly ever watch the news (too depressing. And where’s the good news? Why do they only tell you about the bad stuff?). I don’t watch Bloomberg or CNBC. I don’t read the newspapers very often although occasionally I’ll get the FT Weekend.
I do watch BBC World Business Report in the morning and I subscribe to MoneyWeek, which arrives on my doormat every Friday. There are various websites that I will look at everyday (facebook, twitter….lol). There are some other traders whose style I like and I like to check their sites out and see what they are up to.
When I’m trading there’s either silence, some music or an audiobook interspersed with information about the markets from Ransquawk or the jibber jabber of my trading buddies on Skype for the boring moments.
As a technical trader economic data plays an important role in my trading strategy and therefore I check forexfactory every morning to see what scheduled items of data is due out so that I can plan my day around it. Intervention is not scheduled therefore I cannot plan for it – no doubt it will happen but until then I’ll keep trading those yens short if the set up is there.