So far, this trade has acted as expected in that it is moving down. My thinking is that if the USD is going to gain strength and move up against most currencies, it most likely will move up against the JPY also. That has not happened yet, so I am maintaining my bearish USD stance. I do not have enough confidence to act on that yet, other than this open position of the USD/JPY short, as the real test is coming this Friday. At 830AM Eastern, the US Department of Labor will release the Nonfarm Payrolls. This report has the reputation of being a trend maker and a trend breaker, and deservedly so. So we will know more by the Friday close, but this chart will hopefully show me what traders think of the USD and it's next big move.
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