Bearish USDJPY on 19th week of 2011

I am going bearish on USDJPY this week using my QTD system. No position is opened at this point. I am merely entering my sentiment into the system to trade for me. Figure 1 is a daily chart of USDJPY. Notice it’s lack of life despite the USD making headlines last week. Figure 2 shows the move with a US dollar index, USDX, daily chart. Furthermore, according to the order book on USDJPY, there are massive bullish positions in the red (at a loss) which make this pair ripe for some bull squeeze.

I am going short on NZDUSD as a hedge on this move. It is my favourite long USD pair these days.

USDJPY, daily

U.S. dollar index futures, USDX

Related posts:

1. Bullish USDJPY on week of April 17, 2011
2. Bullish EURGBP as hedge and Bearish NZDUSD as diversification
3. First QTD trade, 0.19% gain long EURGBP
4. A change of wind for Australian dollar: Shorted AUDUSD @ 0.9183 and AUDCAD @ 0.9546
5. Week of Sept 20, 2009: In-play stocks watchlist