USD Vs Non USD currency pairs were clear leaders over many past months in currency markets to include EM. Cross pairs lagged and assumed the position as followers. The first transformation is seen this week as USD V Non USD currencies all begin the week in neutral positions and cross pairs become market leaders. The shift includes EM currencies.
Off kilter amd non aligned to USD Vs Non are wide range currencies EUR/AUD, GBP/AUD, EUR/NZD, GBP/NZD while GBP/CHF and GBP/CAD remain problem pairs although GBP/CAD over last weeks has moved well. The first focus to trades this week are wide rangers, EUR/AUD, GBP/AUD, GBP/NZD and EUR/NZD due to oversold and easy trades.
The second target trades and non aligned are JPY cross pairs beginning with GBP/JPY then and in order to trades, EUR/JPY, CHF/JPY, AUD/JPY, NZD/JPY and CAD/JPY.
While NZD/JPY and AUD/JPY are overbought and heading lower this week, AUD/JPY 5 year average is located at 79.74 and NZD/JPY is stuck between the 5 and 10 year averages at 75.32 and 74.61.
GBP/JPY remains Correlated to GBP/USD at +99%. The positions to JPY cross pairs are overbought Vs neutral USD V Non.
Deeply oversold EUR/GBP correlates to GBP/USD at +30 % and GBP/JPY at +29%. Great trade long EUR/GBP from anywhere with caution at 0.9032.
USD/JPY from its 103.94 close trades this week just below its vital point at 104.16. Failure to break targets lower at 103.21 while a break higher targets 104.63 then 105.11.
The AUD complex as AUD/JPY, AUD/CHF and AUD/CAD are all overbought and the clear leaders to AUD/USD. Same scenario to NZD’s cross pairs.