Day five - potential Japan 225 trade

This trade took an unfortunate turn as geopolitical risk resurfaced and played into the hands of the yen.

Source: Bloomberg

With the yen strengthening, USD/JPY fell and weighed on the Nikkei. As a result, the stop on the trade was triggered and the position was closed.

While it would still be a good strategy to buy the dips, it’s hard to determine just how deep the pullback will go, given the uncertainties around the Russia-Ukraine crisis.

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