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It looks like we are getting the last big push for the day in this USDJPY advance. I think we are going to to see liquidity drain into the weekend starting around 17:00 GMT.
After what happened with the USDJPY's gap two weekends ago, I would not hold any positions going into the close this Friday. We are almost guaranteed to see some big movement when the market's open Sunday evening as the market will either respond to a good or bad bailout plan; or the US government will let the world down and continue bickering and fears of an ongoing crisis will be revived.
All that being said, what do you guys think will come of this bailout plan debate? I think they will probably have something agreed upon and signed by Saturday; but that it will have a bunch of conditions and a far smaller number ($150-300 billion) attached to it.
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John Kicklighter is the author of Dynamic Carry Trade Basket, Watch What The Fed Watches, and Forex Trading Weekly Forecast on DailyFX.com
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