This pair has exploded upwards and needs a correction to the downside.
It is massively overbought on W1, Daily, H4.
H4 is showing divergence.
The resistance at 148.85 is very strong and there is a nice harmonic pattern.
Target 1 is about 500 pips away with an 80 pip SL.
GBPJPY has rebounded strongly from the low of last week.
It has made a high yesterday and is now showing weakness at the current level.
A sell trade here will allow us to challenge the 160 lows.
RSI divergence present and stops just 50 pips above.
BOJ Miss - Sell GBPJPY @Market price; 129tp1 - up to 800pips.
1. A BOJ miss can be considered as delivering the median expectations e.g. 10bps cut to the depo (-0.2%), 10bps cut to the LSP (-0.1%), Yen10trn increase in monthly JGB purchases & 50% Increase in Annual ETF purchases e.g. 3.3trn-5trn. Fiscal Stimulus Yen10-15trn.
- The package above or less...
Why Gold is lagging Safe have losses & Yen is outperforming
1. When looking at Gold vs Yen or XAUJPY it becomes apparent why Gold is lagging the broad safe haven losses that we have seen during this risk-recovery rally - investors are buying gold over Yen - so gold appears to be their preferred safe have asset to hold in a risk-on rally - likely a function of...
Short NZDUSD is in my top 2 FX Trades for several reasons:
1. NZD is considered the riskiest G10 currency cross, so NZD trades weaker in risk-off markets, or when equities/ SPX trade lower (you can see the high correlation with SPX at the bottom of the graph).
- With Brexit occurring last week, global risk has increased, this is especially the case for NZD due...
We had the best possible outcome for FOMC's Rate decision and Fed Yellens speech which was neutral IMO as expected, with the Economic Projections being dovish, downgrading the projected rate hike cycle. We now look to BOJ.
Trading strategy:
LONG USDJPY (possibly short also GBPJPY for longer term investors or investors that want to hedge against a hawkish...
BUY USDJPY @106.5 or @107.0 - SL @105 - TP @109-11 based on:
$YEN's historical most important support level - The 105.5 Key level will more than likely hold as it has many times before
- At 105.5 there are 3 significant UNSUCCESSFUL tests of the level over the last 3 years thus it is a great entry point. Also another plus is if you look at the monthly chart...
