USD/JPY and JPY Cross Pairs

USD/JPY’s target at 113.30 achieved 113.57 lows. As outlined to trade choices from a missed entry at 114.27 and 114.32, and the rise to 114.96, 2 lots held from 114.96 and 114.27 runs +209 pips. The 2nd lot from 114.96 to 114.27 profited +69 pips if traders bailed while the first lot ran free and clear. Either way to outlined choices, no concept exists to losses in trading.

Levels on the downside as follows: 113.72,113.53 and 113.44.

EUR/JPY from the 129.24 target from 132.00’s achieved new lows at 127.97. EUR/JPY faces massive levels at 126.52, 125.90 and 125.46. All massive breaks to result in a deeper EUR/JPY drop if broken. EUR/JPY sits currently at richter scale oversold .

As written, USD/JPY and JPY cross pairs contain a long way to drop and short only strategy. GBP/JPY broke 153.66 to the downside and traded to 152.51 lows. Supports are close at 151.09 and 150.12. Longs look promising for next week.

AUD/JPY achieved new lows at 82.16 against the target at 81.33 and 83 pips to go. AUD/JPY is free and clear to roam and range as 80.17 contains the big support and next major break to trade miles lower.

NZD/JPY finally achieved a move and new lows at 79.51. Like AUD/JPY, NZD/JPY contains wide range ability as 76.55 and 75.09 remains a far distant break, so far.

CAD/JPY target at 88.36 from 92.00’s achieved also new lows at 89.69 and 133 pips to target. No trouble for CAD/JPY to next support level at 86.91. CAD/JPY, AUD/JPY and NZD/JPY commonality is all are allowed free and wide range movements. All are the best pairs to trade alongside GBP/JPY.

Caution however to NZD/JPY as NZD for the month hasn’t been a terrific trade choice as NZD/USD is stuck inside 0.6800’s to 0.7200’s.

Overall currency markets dictates by GBP/USD below at 1.3099 Vs USD/CAD at 1.3044.

GBP/USD trades 400 pips above 1.3099 while USD/CAD trades 400 pips to 1.3044. if either GBP/USD or USD/CAD breaks higher, lower or simultaneously then much more downside exisdts to GBP/USD and Upside to USD/CAD.

While we wait, GBP/USD and USD/CAD will trade in wide ranges and good trade choices for upcoming week;s.

JPY cross pairs all sit deeply oversold and a rise is expected next week. The overall question is how are Correlations running from USD/JPY to JPY cross pairs. Last check was high +90%. This will eventually switch to negative from positive to respective anchor pairs.

For example as EUR/USD to EUR/JPY high correlations and AUD/USD to AUD/JPY. This switch will radically change currency markets to risk favored and to trade in wider ranges as opposed to present dead movements.

Brian Twomey

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