Strange day today in world of currency trading. I call it indecisive market, while in reality it should be ” Mike is confused” or something of that sort. Most notably Yen is behaving oddly from my point of view. As if it couldn’t make up its mind what it is it wants to do. Slew of news from Japan probably added to confusion. Japanese state banks will be buying shares in troubled companies , something like $17B of cash infusion. For what we know it can become much larger as more and more bellwethers of Japanese economy are reporting huge losses. Regular stand out like Sony is an example. I found it interesting that one of executives went as far as saying that electronic industry must consolidate or it will not survive. Pretty grave. In other words news are confusing. As it was stated many times before here, I don’t trade news. However, other people do and it is reflected in charts.
Let’s take a look at NZD-JPY, where I have a buy order.
I expected to be in this trade by now, although at the moment I’m glad it didn’t happen. Price missed my entry by 2-3 pips on this platform and registered quite a steep decline into consolidation area. NZD is not the strongest currency at the moment, but all Yen crosses look like that. Only difference is degree of confusion. This here 4H chart doesn’t look too bad, but 1H is a real mess with all kinds of conflicting clues. The pattern of Yen behavior seems to be: if fundamentals are inconclusive JPY is getting stronger until a little clearer consensus emerges. Only to get muddled up next day. For now I retain my original buy order and place additional one at 46.00. If this happens target would be 47.80. Depending on how Yen pairs act some adjustment might be needed.
Yesterday’s post had a just opened short trade in EUR-GBP.
It was a second position in a row at 0.9440 and, just like the first one, also brought 75 pips. Next sell at 0.9328 was triggered shortly after. This one has an objective of 100 pips. As I’m writing this, it seems that some adverse movement is inevitable. Have to monitor it.
If you are reading it and feel a little disoriented about market’s behavior today, don’t despair. Join the club.
Mike K.
Mike, I joint you in on this 75 pips trade in EUR-GBP. Great job. I passed on the next one, because excitement level is a little too high. Thank you.
Andy, very good. You might have a better level to enter soon.
I’m glad to be not the only person confused by market today. Tried to go long USD-JPY and was stopped out. Then sold it only to be stopped out again. No big losses, but my confidence is shattered. Do you use MACD for trading?
Not really. Sometimes I take MACD divergence trades, but don’t trade crossovers. It can be usefull for confirmation of breakouts, so I have it on some charts. It is not a primary tool for me.
Mike, how long do you think Yen will remain in this sideways pattern it shows on most charts? I mean 4H charts.
nice call gbp.chf breakout?
now if tottenham can get keane back…
Heather, I think that before the end of the week Yen will break out. But this is just an opinion. Patterns on 4H charts can easily hold for couple of weeks. Hopefully not this time.
Than you Mark. It still has ways to go. Much like Tottenham, which is at least out of the cellar for now.
See all kinds of EPL fans here. Go Liverpool! It has been a long wait.
Now I’m even more confused. What is EPL? What are you guys talking about?
EPL- English Premier League, the best football competition in the world. Soccer for you.
Ah, the beautifull game and the Hammers!