I don’t know what got into me to enter the short GBP trade – against my system, against the trend, against all sense! After the stupidity of the last trade I am going back to the straight and narrow. The USDJPY has dropped back to where the signal was first generated and it is still a buy. It looks like it should get a lift in the next day or so, back to 99.
Long $30/pip USDJPY at 97.68. Stop loss around 97.10 or at worst 96.93.
P.S. On a related note, it is interesting that the dollar index, DXY actually fell while gold and silver got seriously whacked. The old equation was: gold weak = dollar strong . It looks like the DXY is on a path of its own, determined more by EURUSD and USDJPY than anything else. The DXY is close to the 38% correction from recent highs that coincided with UJ highs. It should bounce from the 38% retracement. That bounce in the DXY will likely be manifested in a rising USDJPY since EURUSD is close to strong resistance above at 1.3230.