Intensified Selling in JPY Crosses (4)

Fast and furious. This morning, I thought we might finally get some price support in some of the JPY pairs. Nonetheless, I was right to be cautious. By mid afternoon, the selling action has intensified once again. Some crosses were pushed down over 100 pips in less than an hour and even more afterwards.

Market pulse:

"The risk theme is very pervasive today. As credit spreads widen, we're seeing the carry trade being unwound.''
"All asset classes are moving now. As the equities are coming down, people are paring risks and liquidating some of the carry trade positions.''

Trading update: zero action for today, still on the sidelines. I was being too selective and might have missed some great setups too. There is always tomorrow.