Stronger numbers out of Japan

A stronger June Machinery order for Japan (8.5% increase against a 2.1% decrease last month) did nothing to help the Yen last night. This is an interesting move from my persective. Other currencies in the region strengthen last night (noteable Korea) and it would have made sense that Yen should have not only followed but led the way. I am thinking the yield baskets are being put on.

Being long:

Korea,India,Indonesia.Philipians

against

Being short

Japan
Thaibat
Singapore
Taiwan

Seem like a strong play if you think little will happen. I also think you can be long Usd/China as I think the market is looking for an increased appreciation of the currency and will be disappointed. You can extend this type of trade to other regions too. But I always try to remain Dollar neutral when running these trades.

Under this senerio Usd/Jpy can continue to grind higher (absent any really really really strong numbers).

These are the FX Trading Ideas for today


FXTRADINGIDEAS@AOL.COM