Is the hysteria over?

A sense of calm has returned to the market, helped by positive NZD data and a BOJ member back-tracks on future JPY rate hikes.

My current thoughts are a return to 'risk on' trades could be in the pipeline. The problem with a JPY short at the moment is due to the recent volatility, a 100 pip stop loss would be required.

So, I'm going to wait to see if a couple more 1hr 'up swings' form on the JPY charts. Then if the VIX continues to drop. I'll be happy to place a 50 pip stop loss JPY short with a stop loss behind a 1hr swing.

Feel free to email any questions: johnelfedforexblog@gmail.com