EURO, YEN (24 Oct 2008)

I must say that I should have got into the EURO, YEN trade yesterday. But I told myself I shouldn't because it is a gamble due to the fact that I cannot execute trades for options during asian market trading hours. Wouldn't it be nice if options trading is 24 hours?

EURO was trading sideways during US market trading time yesterday. The volatility on FXE spiked by at least 80% to 25% from 15%. Even though 25% might look little, it is a lot when you are trading forex as compared to stocks.

The charts below shows the EURO and YEN during asian trading time.


Here is a snapshot of the US Futures, all under pressure from weakness in EURO and strength in YEN.


Strategy: I am targeting that YEN should find some support between 91-92. While the EURO should find support at 1.25. If both these currencies bounce, would be good for equities.