Not too much happened today in the world of currency trading. Markets were relatively quiet, rather predictably. I thought markets would be a little more active during Asian session and then taper off as the US session approached. With the Memorial Day holiday, quiet day was expected here. Does it mean that Tuesday will be hectic? Not necessarily, but trading ranges should be bigger than on Monday. Just how much bigger it remains to be seen.
At the open, the gaps were non-existent to marginal, so no real opportunities there. Yen went through some weakness and JPY pairs climbed for a while. The CAD-JPY, pair discussed here yesterday, was the only one that took out Friday’s high. I took that trade, but cut it short after few hours. No other cross confirmed this breakout, price progress was slow and the reversal was serious looking, so this trade was cut with a minor loss.
Almost immediately following the breakout, an ominous reversal pattern formed. It wasn’t huge in terms of pips, but the bearish candle was large when compared to others in the most recent history. I gave the trade a little bit of time and got out for -12 pips. No big deal. Over last few hours the Yen pairs sold off and it looks like they are ready to break under the recent lows. BTW, CAD-JPY could still be a buy at 87.90. should the direction reverse again.
At the present, the AUD-JPY, together with the EUR-JPY seem the weakest of JPY pairs and should be the first ones to sell, if we see a decisive move down. Right now, the Aussie-Yen is touching the 100SMA on hourly, so I think it will bounce . With this in mind, I’m placing a sell order a little lower, at 76.15. If the move happens, 150 pips could be a reasonable target, even if it takes longer than a day to reach it.
Mike K.
[...] At the present, the AUD-JPY, together with the EUR-JPY seem the weakest of JPY pairs and should be the first ones to sell, if we see a decisive move down. Right now, the Aussie-Yen is touching the 100SMA on hourly, so I think it will … View full post on EUR/JPY – Google Blog Search [...]
Do you really think that aud-jpy will drop that much? Wouldn’t it be better to settle for 90-100 pips?
Nice moves today, Mike. Including gbp-aud. Did you manage to have a trade in that pair? There were couple of opportunities to get, the way you do it.
yes, the 150 pips is probably a litlle too big, for one day. 90-100 pips be better.
Kramer, I’ll discuss the gbp-aud in next post.
[...] trade in AUD-JPY from yesterday, had an objective which was too ambitious. The 150 pips was just not happening and I exited this [...]
nice post. thanks.
[...] Quiet Memorial Day trading | fxmadness.com At the present, the AUD-JPY, together with the EUR-JPY seem the weakest of JPY pairs and should be the first ones to sell, if we see a decisive move down. Right now, the Aussie-Yen is touching the 100SMA on hourly, so I think it will … View full post on EUR/JPY – Google Blog Search [...]
[...] want to trade them here because the stops would be little too big, demanding larger objectives. Since I expect less than active day, those objectives are less likely to be [...]