USDJPY 2-8-07

2-8-07

USDJPY

The 1.2100 short trade is out since the USDJPY based near 1.2086 all day yesterday to absorb the supply near 1.2100. If you used a sell stop to enter at 1.2099, your order should still be open since the low since 1:00 AM today is 1.2102.
The USDJPY has actually based near 1.2122 this morning and could go higher to the 1.2160 area of supply. I would not short the 1.2160 area. I would short 1.2187 and cover near 1.2122 if the USDJPY rallies past 1.2122.