Flows and Orders/FXWW News/JPY crosses/Trade Ideas/USD/JPY

USD/JPY: Opens higher amid heavy turnover

  • Nikkei expected to open higher today;
  • Chinese trade data supports the ‘risk’ trades;
  • Market already long from last week so many stale longs happy to sell into this morning’s strength;
  • Prices need to break above last week’s 100.20 highs in order to rejuvenate bullish momentum;
  • Crosses like AUD/JPY and GBP/JPY still look bullish.

Conclusion: I still prefer the buy-big-dip strategy but we need to pick our levels carefully. I don’t fancy being caught long near 100 just as happened to many on Friday when we got the big clean-out to 98.00. Be patient and buy dips is my view, or bears can try selling intraday rallies to 100.00 with tight stops above 100.30.

  1. hi Sean, great call for usdjpy, I been follow your advice close the long at 100 and turn to short, thanks!! and from the chat room I noticed your analysis for EURAUD, u are consider this pair may turn lower to 1.39, so it may support my view that the EURUSD will turn lower to 1.30-1.305 lvl(maybe),but remember that last time you are sharing your point to GBPAUD?? u r thinking that this pair will turn higher after retracement, after last week I’m noticed that GBPAUD and GBPNZD looked like very oversold, will u consider take small long for this 2 pair, especially GBPNZD, the trendline seen like still holding, and 1.949 seen like the good support lvl? sorry ask too much but appreciate if you can help, thanks

  2. Hi Jack, I prefer to play the long GBP card through long GBP/USD and short EUR/GBP. GBP/NZD is too exotic, even for me 🙂 EUR/GBP could be a big surprise mover in coming months especially given the big change around in sentiment. If does happen I think more likely that cable goes 1.60+ and EUR/USD drifts sideways again

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