Long Term Targets, USD/JPY, GBP/JPY, NZD/USD

USD/JPY achieved weekly target at 114.28 perfectly as written Sunday. Shorts yesterday from 114.15 traded to 114.80 lows for a quick 35 pips. USD/JPY is now overbought and weekly downside target remains 113.30 on a break of 113.71.


GBP/JPY achieved new lows yesterday at 152.36. On a target at 151.78 from 158.00’s, GBP/JPY traded within 57 pips to target. The overall target will not only reach its destination but a 3 week trade for an easy 700 ish pips.

For 700 pips to target without regards to economics or releases, central bank meetings, interest rate changes, taper, Powell, charts fibs, stops, 4 hour charts. A forward currency price doesn’t see or care to 90% to the written word in regards to possible factors for the price.


Long term target trades were not available for the majority of 2021. Only CHF/JPY for 500 ish pips yet the actual target never traded but close at high 116.00’s from 121.00’s. Long term defined as easy trades for 500 and 700 ish + pips and only requirement is click, set target and walk away to live life. Many long term target trades were shown and written on these pages over prior years.


Long term trades are now becoming available. Historically, long term trades seem to become available every 2 years or so. For 2018 and part of 2019 were terrific to long term trades. Then 2020 and now into 2021 was a drought but now end 2021, trades are opening.


The question to 2 years is a factor of our 28 currency pairs and USD Vs Non USD currencies. Currently by correlations and by the concept as the 2md side of the currency pair as the price driver, 19 of 28 currencies are USD pairs, moves with USD and driven strictly by USD.


This leaves 9 currencies as non USD such as EUR/USD, GBP/USD. These pairs are anchor pairs to the overall universe of cross pairs. Why only 9 pairs is because anchor pairs are not aligned to respective cross pair universes.


JPY cross pairs align to USD/JPY by correlations, USD/CHF aligns to AUD/CHF and other associated CHF cross pairs, EUR/CAD aligns to USD/CAD and other associated CAD cross pairs.


The standard and permanent USD currencies without regard to USD Vs Non USD are GBP/NZD, EUR/NZD, EUR/GBP, CHF/JPY, EUR/AUD and GBP/AUD. All are married at the hip to USD.


No long term trades informs USD currencies and NON USD are married and closely aligned to distances. No trades available. When USD and NON USD breakout as is seen today by breaks at long term averages then long term trades open wide for many currencies. Throw a dart at a currency and trade to long term targets is basically the scenario. Many pips are earned effortlessly and it is the time to truly bank easy pips.


NZD/USD


Next pair to fall and /or monitor closely to 5 year averages is NZD/USD at 0.6847. NZD overall has been a dead issue for the past month and must get moving again as it traded from 0.6800’s to next vital break at 0.7200’s.


As bottom most currency by exchange rate numbers, NZD/USD break at 0.6800’s will set off a chain reaction to Non USD shorts to include EM currencies. The message is shorts are clear and safe trades.


NZD/USD 5 vital numbers for today are located at 0.6981, 0.6992, 0.7001, 0.7034 and 0.7052.


AUD/USD


AUD/USD 5 year remains at 0.7310 and a target at 0.6902 so far.


EUR/USD Upside Vs Downside.


Took 6 months for EUR/USD to travel from 1.1400’s to 1.2300’s and 9 months to trade to 1.1400s. We have 6 up Vs 9 down and broken down to the lowest common denominator by day trades, upside Vs downside prices are vastly different and never the same. Its built into the price system permanently to uneven numbered price paths.


Take NZDUSD for example. The first 2 numbers in NZD/USD’s price path is 0.7020 and 0.7025 and ends in 5 and a permanent day trade condition. No other number is uniform to end in 5. GBP/JPY upside target today is located at 153.50 but no downside price ends in 0.


Most vital to 5 year averages is GBP/USD at 1.3095 and USD/CAD at 1.3048.

Brian Twomey