Speculation persists regarding the Bank of Japan's potential departure from negative interest rates, yet the USD/JPY maintains its position within a 150–152 range for seven consecutive sessions. Caution is warranted due to a weaker-than-expected Q3 GDP, a slump in imports, and...
Trade idea for a cheerful market
2019-12-13 • Updated
Risk sentiment is boosted by the news that Boris Johnson’s Conservative party has won the UK election. In addition, market players are hoping for the announcement of a phase 1 trade deal between the United States and China after Donald Trump hinted on such a possibility in his tweet on Thursday.
CNY/JPY is a good proxy for traders’ optimism. The technical setup for it is also quite interesting. The uptrend is in place since the end of August. Recently the pair formed a bullish flag, while Thursday’s close above the 200-day MA (15.65) solidified the position of buyers.
On Friday, the pair opened with a gap up above the 50-week MA (15.76) and then corrected down. The return above this level will open the way up to 15.915 (61.8% Fibonacci of the April-August decline). A fundamental shift in sentiment may boost the rate to even higher, to 16.20 (the resistance line of the longer-term downtrend). If, however, it happens that the cheerfulness was premature, the fall below 15.65 will bring the pair down to 15.55.
Trade ideas for CNY/JPY
BUY 15.80; TP 15.90; SL 15.77
SELL 15.63; TP 15.55; SL 15.66
The Pound exhibited a mixed performance due to limited fresh UK data, leaving it susceptible to external influences. Bank of England (BoE) policymakers, including Governor Andrew Bailey and Chief Economist Huw Pill, adopted a more hawkish stance, suggesting a...
The Bank of Japan (BoJ) recently concluded its October monetary policy review meeting, deciding not to make any adjustments to its current policy settings. This means the interest rate remains at -10bps, and the 10-year JGB yield target remains at 0%. A noteworthy change...
Bitcoin's price remains stagnant despite the Fed's slightly less hawkish tone. In contrast, Bitcoin has outperformed other assets, doubling in price from $16K to nearly $38K this year. Improved fundamentals, including the resolution of Binance concerns...
Hey folks, it’s a wrap to yet another month in the 2023 calendar, and I’m guessing you know what that means - time for another episode in the “What To Trade” series. For December, I will be mapping out trade more cautiously as the market volatility often drops
Gold prices, reaching the highest since May 5, are consolidating as traders await the US PCE Price Index, a key inflation indicator. The upcoming data could impact the Fed's policy, influencing the demand for the US Dollar and providing direction for gold. The Greenback sees some repositioning, recovering modestly ahead of the data risk.