Is it time for risk-on currencies to drop back? This strategist thinks so, and he has a plan to trade the move.
The Bank of Japan's intervention on Monday pushed the yen sharply lower, and it stands ready to move again - but according Todd Gordon, co-head of research and trading at Aspen Trading Group, they're bound to fail.
"They went big, but the Ministry of Finance was acting unilaterally. Based on the past, it's just not going to work," he told CNBC's Melissa Lee. It's not just because unilateral currency interventions have a lousy track record, though. Gordon also thinks the rally in risk-on currencies is just about out of gas. Gordon points out that the yen-Australian dollar pair closely tracks the movement of S&P 500 futures, and futures have gotten ahead of Aussie-yen, suggesting a pullback is coming.