Turns out my remarks from yesterday’s post, Important trend is emerging, must have touched a raw nerve with investors and traders  worldwide. This is very dramatic- worldwide. Towards the end of the post I was making fun about how predictable and one dimensional Forex related headlines have become. Last sentence was ” Maybe by tomorrow everybody forgets about safety and becomes intrepid, or reckless, and dumps the Yen.” It was intended to help my attempts to go long GBP-JPY, the beast.

Today I’m learning that, indeed, a wave of risk appetite swept over the world. At least that’s what major news agencies claim in relation to both Dollar and Yen. Something like “USD, JPY fall on risk demand” is very common today. The more things change, the more they stay the same, really. With one exception, perhaps. Somebody attributed today’s strength in British Pound to … US economic growth? It is a new one, and I don’t expect it to stay around for too long.

No matter what the generally reported reasons, GBP-JPY snapped sharply today. I had tried go long this pair couple of days ago, but order was not filled. Yesterday I bought it at the market seeking good gains, but market didn’t move as swiftly as hoped for and I closed the trade for minor gains.

After the entry, price made an almost immediate run at the first objective, which was previous minor high at about 149.65, or 100 pips. It failed. Shortly after another run didn’t make any progress either. Soon after that update had been posted, price made another run at the objective, but came short again. Certainly wasn’t going to happen yesterday, so I got out right there and then and called it a day with 33 pips profit. During Asian session another possible bottom formed. Had to wait for the European opening, since trends often either gain steam or reverse at that time. My confirmation was move above minor high of 148.30. Original objective was maintained, which by now coincided with 100 SMA, I closed some of the trade for almost 140 pips gain. That’s when real surprise came- my expectation was for the trend to reverse, or pause there, but the GBP-JPY just came on climbing, getting serious. Secondary target was met quickly, for additional 80 pips. Well. the beast lived up to its name.

The Next move  post, covered mostly EUR-GBP, but also touched on GBP-CAD and GBP-CHF in it. Pound- Swissy was almost a mirror image of Euro-Pound, but the Loonie cross looked a little different. It was clearly building a buy set up, so I straddled it with buy orders. Thought maybe it would find support on 100 SMA. That didn’t happen, but the breakout order was good, producing 150 pips.

I’ve been very active trading Pound pairs this week, and there is more to it. For right now I’m not posting any new trades here, there are too many existing issues that need updating, including EUR-GBP. This, and other matters will be taken care of tomorrow, so I don’t want to introduce additional complications (new trades). Plenty of ground to cover as is. In the next post.

Mike K