GBPJPY Long

 Posted by at 2:37 PM  FX Market, Global Equities
Jul 082020
 

We have seen a good rally in equities since last week. Monday was a huge run up that was met with an equal amount selling yesterday. As of press time, Dow futures has broken yesterday’s low. We might be seeing some sort of bearishness near term. The best entry for an intraday short was about 2 hours ago.

Given the late entry for a short opportunity, there might just be another opportunity on the flip side.

Sterling has been strong lately. Market is looking forward to fiscal stimulus announcement today. This would be around 8PM (GMT+8).

Market is now moving in unison. USD and JPY are strong against risky currencies AUD, NZD, and GBP. This fiscal stimulus announcement by the UK government may provide some ground for GBP and a unilateral move may just pop up.

GBPJPY Long:

Entry 134.60-134.00, TP 136.20



GBPJPY Long by traderh on TradingView.com

AUDJPY Long

 Posted by at 1:18 PM  FX Market
Jul 012020
 

Market has spoken. Bulls pulled off another positive run yesterday to mark a 2-day winning streak. We’re expecting bulls to remain in control after a 2-week hiatus. Market remains to be risk-on mode despite last day of fiscal stimulus by the US on July 31. Could it be because investors believe that Democrats and Republicans will be able to cut a deal and extend stimulus until January 2021?

Meanwhile, bears seem to be weak with its COVID-19 story. Increasing cases seem to be a discounted issue for the market. Second-wave story might be a thing 3 more months from now.

So for the meantime, let money rule the world and risk remains the name of the game.

AUDJPY Long: Entry 74.20-73.80, SL 73.2, TP 75.6



AUDJPY Long by traderh on TradingView.com

AUDJPY Short

 Posted by at 1:27 AM  FX Market
Jun 262020
 

Market continues to be listless for the 4th day. Although equities has moved quite significantly, Yen seemed to be more flat.

Overall, AUDJPY is expected to be in a range of 76.5 to 72.5 with a bearish tilt. The bearish taper is what make this look attractive to short and it coincides closely to DJI.

Fundamentally, tug of war continues between Covid and the FED. The sudden rise in Covid cases this week failed to put a dent on the market. On the flip side, President Trump’s announcement of a new $1 Trillion stimulus package failed to ignite the bulls as well.

Tomorrow will be the last day of the trading week and we shall see where the market will really take this – up or down. Monday should be something to look forward to as we have gone through two gap down Mondays, which was the trend when the crisis started last February.

AUDJPY Short:

Entry 73ish, TP 70.00

I would pay attention to price breaking previous day’s high and should signify a short-term rally back up. Either stop out, stop and reverse, or hedge against it. Another option is to just accumulate shorts from 73 to 77.



AUDJPY Short by traderh on TradingView.com

Unilateral Moves on GBP

 Posted by at 7:11 PM  FX Market
Jun 182020
 

BOE released their Official Bank Rate and Policy Guidance. GBP is rallying up unilaterally. Ideal trade here is to short GBP against AUD, CAD or NZD.

Jun 182020
 

Last night, FED Chairman Powell failed to push the market higher as he stayed on status quo on FOMC’s QE plan. Equities market ended lower by 0.5% after seesawing most of the day. Futures plunged 300 points deep during Asian session. Although it has recovered those losses, we may just see some more selling soon as market lacks fresh stimulus to go higher.

Bulls are in a delicate position as a few more Covid-19 stories may easily tip the scale to the bear’s favor.

Asian session started with bad data from New Zealand and Australia. Both currencies recuperated but are hitting key resistance levels.

What else can push the market higher now?

Bank of England will be announcing policy rates at 7PM (GMT+8).

Trade Opportunity for Today:

Entry 73.5, SL 73.8, TP 72.50



AUDJPY Short by traderh on TradingView.com

GBP at Play Today

 Posted by at 3:01 PM  FX Market
Jun 172020
 

UK release some CPI and PPI data a while ago at 2PM (GMT+8). Sterling is currently moving positive against USD and JPY and negative against AUD and NZD. It seems that the market is still on a risk-on scenario.

However, it is important to not that equities last night closed flat after FED Chairman’s testimony. This may provide guidance that the FED failed to ignite the bulls’ appetite. Futures is also flat.

Sterling play I am seeing is a short against safe havens USD or JPY when it rallies to bargain levels.

UPDATE:

Given DJI Futures pulling back from resistance and walking on a tightrope, my forecast is for the market to generally be risk-off.

Screen Shot 2020-06-17 at 20.49.47

Play is a GBPAUD Long at 1.82, SL -25pips, TP +100. Judging by the charts, this pair seems to provide the least resistance compared to going short GBPUSD.



GBPAUD Long by traderh on TradingView.com