Ok this was for the A.M. I do not wish to get into the habit of commenting at night!

First a brief fyi on the Yen price action. Shades of 1995 and before when that type of currency movement was a common occurrence. Not only did the dealers flush all the resting orders for years in the straight dollar, the tipping point was 110.70 EUR/JPY, Why? All you guys looking at a 10 minute chart should peer at the monthly! You will then begin to understand how markets move. The straight USD/JPY tgt was meaningless. Only the crosses would dictate where the Yen would stop and how far it would go. EUR/JPY had two possible #’s 106.80 or 105.41. Below 105.40 it would still be going. The true IMM futures price at the Dollar low should have been 130.30 ish. When the IMM did open the futures were almost 200 points too low, that’s right they were seriously mispriced! Cash was around 77.30 USD/JPY when the opening in the futures was app 127 (M), 200 + points too low. The arbs didn’t make that much in 1974, only 50-80 points a trade, EVERY TRADE!

Why am I going on about this? I am merely trying to use this as a teaching moment!

Most market participants have never seen price action like this. A prepared trader knows where the big macro stops are and how ridiculous price action can be when the big boys decide to run every stop in the universe and take the other side during a time period which has the lowest volume in any 24 hr. trading period.

110.70 is the macro monthly closing # for EUR/JPY

78.16 now becomes the key level in AUD/JPY on a monthly closing basis.

Having a sense of the macro levels in the crosses can make you loads of money, but more important they will save you much much more in not doing something stupid at the wrong level.