What’s going on with the JPY crosses
First of all, I really hope things in Japan get better, must be very difficult for them to deal with a nuclear crisis just after an earthquake and a tsunami last week…
Usually, when there is a crisis in one particular country, its currency tends to lose value against others, but that hasn’t been the case for the JPY, it has gained value against all of them: USD, EUR, GBP, etc… Some analysts say Japanese investors are buying their currency to fund rebuilding projects, some others say speculators are becoming increasingly confident about pushing the currency pair, but to tell you the truth, all of them are playing the past prophet, its always difficult to determine how the market will react to unexpected events. Sometimes it goes up and sometimes it goes down, all we need to do is just follow the market.
Earlier today, there was a signal in the GBPJPY to go short (I was asleep though and wasn’t able to take it):