USDJPY carry trader trying to make a breakout.
Not an opportune time for Carry Trade to resume, when bank risks are worsening, property prices dropping. Hence USDJPY should not rise much further. 106 should be the cap.
Month ago, in my blog, I mentioned that Banks like HSBC was offering Euro deposit at 4.25% interest p.a. for a 2 months fixed deposit.
Imagine how can they possibly make monies when ECB rate is at 4% ?
Obviously the Banks entice the masses to buy Euro and then they sell Euro into the market, and make the difference when Euro weakens. The Banks are confident of that b'cos after the Washington IMF World Bank meetings, there seem to be a consensus among institutions or Central Banks to allow a stronger Dollar to stall inflation.
However never did they then foreseen Oil to rise above 120-125.
Hence the 1.5800 upto 1.6000 level is heavily defended, as a lot of Institutions Long positions with stops at that levels.
However, it also means there is a Crown Jewel out there for the taking. Whoever can
push it through 1.5900 to 1.6000, has a lot to gain, both in Forex and Equities.
Hence, who would be the Black Knight ?
Shall I call for battle to push Euro to 1.6000, if yes, pls click on the Google Ads.
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