JPY Is Rallying Across the Board Once Again

I was strongly advocating getting in new short positions and claiming that the USD/JPY was going to test 115.35 again. This was when the pair was around the 117.10 level. The problem, and a common one, was that prudent investors most likely placed their stop orders too close. Trading this as a medium to long term strategy like I claimed would lead one not to place very close stops, however, my position got stopped out as well being that the USD/JPY passed the 61.8 Fibonacci line in the retracement of the previous rally.

However, after I saw that the JPY was rallying again, I placed fresh shorts in USD/JPY and NZD/JPY (has the biggest interest rate differential for carry trades) and is now making tremendous gains as we speak! The USD/JPY is already at 116.03 as we speak, look at where my screen shot left off minutes ago!

In regards to fundamentals (long-term view), Japan's economy is fueling up. In regards to short term technicals we see that a head and shoulders formation played out.