The price action this week shows a market that is long yen crosses and nervous.
The saying in a bull market — like USD/JPY — is that gains are shaped like an escalator and losses are shaped like an elevator. It means that the market will make slow, steady gains until some piece of bad news hits and everyone scrambles to the exit before the uptrend resumes.
We saw that on Monday with the G7 statement fiasco and to some extent today with the 25 pip drop after the G20 statement.
What is a trader to do?
Try to use the drops as opportunities. If you have profits, protect against sharp drops or be prepared to ride them out.
